Are Non-Competes Enforceable in New York?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Enforceable if reasonable
No general ban; reasonableness test; broadcast workers protected
New York has no general non-compete statute. Courts enforce a covenant only to the extent it is reasonable and protects legitimate interests, and may partially enforce an overbroad covenant if the employer did not overreach and acted in good faith. Broadcasting employers may not require post-employment non-competes of non-management broadcast employees. A statewide ban (S3100A) was vetoed in December 2023; a 'stay-or-pay' law (Trapped at Work Act) takes effect December 19, 2026.
Check a non-compete
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Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Enforceable if reasonable
New York enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.
- New York: No general ban; reasonableness test; broadcast workers protected. N.Y. Labor Law 202-k (broadcast employees)
Other New York rules to check
- If a court finds it too broad: Courts have discretion to modify or refuse to enforce.
- Penalties: Broadcast employers that violate 202-k are liable for damages, attorney's fees and costs.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
New York non-compete rules
- Overbroad covenants
- Courts have discretion to modify or refuse to enforce
- Penalties
- Broadcast employers that violate 202-k are liable for damages, attorney's fees and costs.
Profession-specific rules
- VoidBroadcasting employers may not require broadcast employees (other than management) to refrain from working in an area, for a period, or for an employer or industry after employment ends. N.Y. Labor Law 202-k
Recent and pending changes
- December 19, 2026: Upcoming: the Trapped at Work Act (2025 ch. 643, as amended by 2026 ch. 16) takes effect, generally voiding employment promissory notes that require repayment if a worker leaves before a set period. A9452 (2026 chapter amendment)
- December 22, 2023: Governor vetoes S3100A, a near-total non-compete ban (Veto Memo 133). S3100A actions
Pending: S9759 (ban except for workers earning $500,000+ and sales of a business) passed the Senate June 3, 2026 and is in the Assembly Labor Committee; S4641A passed the Senate June 9, 2025 with no Assembly action.
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in New York?
No general ban; reasonableness test; broadcast workers protected. New York has no general non-compete statute. Courts enforce a covenant only to the extent it is reasonable and protects legitimate interests, and may partially enforce an overbroad covenant if the employer did not overreach and acted in good faith. Broadcasting employers may not require post-employment non-competes of non-management broadcast employees. A statewide ban (S3100A) was vetoed in December 2023; a 'stay-or-pay' law (Trapped at Work Act) takes effect December 19, 2026.
Did the FTC ban non-competes in New York?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Enforceable if reasonable): Alaska, Arizona, Connecticut, Delaware, Indiana, Iowa, Kansas, Kentucky
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Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in New York.