Allowed if reasonable

Non-compete law in New York

New York has no general noncompete statute: employee covenants are enforced or refused under judge-made reasonableness rules. The only statute is Labor Law § 202-k, which bars broadcast-industry employers from requiring non-management broadcast employees to agree to post-employment restrictions on time, place or employer. A statewide ban bill passed both houses in 2023 and was vetoed on Dec. 22, 2023. Later ban bills (S 4641A in 2025, S 9759 in 2026, which exempts workers averaging $500,000 a year) each passed the Senate (40-22 on Jun. 9, 2025; 40-21 on Jun. 3, 2026) and sit in the Assembly Labor Committee; neither is law. Two New York City Council bills introduced Jan. 29, 2026 are in committee.

Last verified · confidence medium. Clauseworthy is not a law firm and does not give legal advice.

Employee non-competes
Not banned; conditions apply
Pay floor
None in the statute
Duration
No statutory cap; common-law reasonableness (not sourced to an official opinion here).

Exceptions and special rules

  • Broadcast industry employees (on-air or off-air, excluding management) of television, radio, cable, satellite/internet broadcasting employers. A broadcasting industry employer may not require, as a condition of employment, that a broadcast employee or prospective employee refrain after employment from working in a specified geographic area, for a specific time, or with a particular employer or industry; enforcement during the term of an employment contract is not prevented. Violators are civilly liable for damages, attorney's fees and costs. (N.Y. Labor Law § 202-k (current revision 2014-09-22))

Non-solicitation clauses

No statute; common law.

Contracts naming another state's law

None enacted. (Pending S 9759 would apply to anyone who lives or works in New York, including remote workers reporting to a New York worksite or supervisor; not law.)

Remedies

Labor Law § 202-k(3): damages, attorney's fees and costs (broadcast employees only). Otherwise common-law remedies.

Recent changes

  • 2026-06-03. S 9759 (Gianaris; same 2025-26 session; 'prohibits non-compete agreements and certain restrictive covenants'; Labor Law § 191-d) passed the Senate 40-21 (Labor Committee vote 9-4) and was delivered to the Assembly and referred to labor on 2026-06-03; the Assembly companion A 10023 (Bronson) was referred to the Assembly Labor Committee on 2026-01-28. Neither the Senate page nor the Assembly pages show any later action on 2026-10-14. Sponsor memo: excludes 'highly compensated individuals' averaging $500,000 a year, exception for sale of a business by owners of at least 15%, broadcast employees keep § 202-k, liquidated damages up to $10,000 per covered individual, effective 30 days after enactment for contracts entered or modified on/after that date (one section 180 days). Not law. Source
  • 2026-01-29. NYC Council Int. 115-2026 (ban on employer noncompetes with employees; voids existing ones; $500 civil penalty per violation) and Int. 127-2026 (low-wage workers; notice to prospective hires) introduced; both in Committee on Consumer and Worker Protection on 2026-10-14. Not law. Source
  • 2025-06-09. S 4641A (2025-26) passed the Senate 40-22 and was delivered to the Assembly, referred to labor; it did not advance in the Assembly. Not law. Source
  • 2023-12-22. S 3100A (2023-24), a statewide noncompete ban, passed the Senate Jun. 7, 2023 and the Assembly Jun. 20, 2023, was delivered to the Governor Dec. 12, 2023 and vetoed Dec. 22, 2023 (veto memo 133). Not law. Source

Primary sources

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