Non-compete, Customer and Employee Non-solicitation, and Confidentiality Agreement
(NY)

Employers may use this template for a New York non-compete (also known as a non-competition agreement or a covenant not to compete), customer and employee non-solicitation, and confidentiality agreement. It is intended for private employers. It has been tailored to comply with New York law. As a result, the text of this template differs from the non-jurisdictional agreement template. It contains practical guidance, drafting notes, and alternate clauses. IMPORTANT NOTE: On April 23, 2024, the FTC issued its final rule prohibiting new non-compete agreements with all workers. The rule provides that existing non-compete agreements with senior executives remain in force, and existing non-competes with all other workers are not enforceable. The term “senior executive” means a worker who makes more than $151,164 and who is in a “policy-making position.” The final rule is set to become effective 120 days after publication in the Federal Register, but it is being challenged in court, including by the U.S. Chamber of Commerce. For more information on the FTC’s final rule, see Fact Sheet on the FTC’s Noncompete Rule. For a full listing of key content covering restrictive covenant considerations, see Restrictive Covenants Resource Kit. For information on non-disclosure and confidentiality agreements in New York, see Restrictive Covenants (NY). For information on non-disclosure and confidentiality agreements in New York and other states, see Non-competes and Trade Secret Protection State Practice Notes Chart and Non-competes and Trade Secret Protection State Expert Forms Chart. For information on non-disclosure and confidentiality agreements generally, see Non-disclosure Agreements: Key Negotiation, Drafting, and Legal Issues (Pro-Employer); Confidentiality Agreements; and Social Media in Restrictive Covenants. For additional information on New York state laws concerning customer and employee non-solicitation agreements, see Restrictive Covenants, 1-4 New York Employment Law § 4.03; 4-25 NY Practice Guide: Business and Commercial § 25.04 [6][b][iv], and Restrictive Covenants (NY). For information on New York and other state laws concerning customer and employee non-solicitation clauses, see Non-competes and Trade Secret Protection State Practice Notes Chart and Non-competes and Trade Secret Protection State Expert Forms Chart. For additional information on customer and employee non-solicitation clauses generally, see Customer and Employee Non-solicitation Agreements: Key Negotiation, Drafting, and Legal Issues. For additional information on New York laws concerning non-compete agreements (also known as non-competition agreements or covenants not to compete), see Restrictive Covenants (NY); Restrictive Covenants, 1-4 New York Employment Law § 4.03; and 4-25 NY Practice Guide: Business and Commercial § 25.04 [6][b][iv]. Notably, in mid-2023, the New York legislature passed a law, pending the governor's signature, that would prohibit non-compete agreements in New York. For more information, see New York Non-compete Ban Goes to Governor. For information on non-compete agreements in New York and other states, see Non-competes and Trade Secret Protection State Practice Notes Chart and Non-competes and Trade Secret Protection State Expert Forms Chart. For information on non-compete agreements generally, see Non-compete Agreements: Key Negotiation, Drafting, and Legal Issues; Non-compete Agreements Checklist (Best Drafting Practices for Employers); Restrictive Covenant Basics, Including Adequate Consideration, Protectable Interests, Geographic and Time Restrictions, and Permissible Scope; Restrictive Covenants: Drafting Common Provisions; and Non-compete and Non-solicitation Agreements Checklist (Addressing Suspected Violations).