Is My New York Non-Compete Agreement Enforceable If I Was Terminated Without Cause?

January 15, 2011
By Jeffrey T. Rosenberg, Esq. on January 15, 2011 2:10 PM |

New York courts "will not enforce a non-competition provision in an employment agreement where the former employee was involuntarily terminated." SIFCO Indus., Inc. v. Advanced Plating Techs., Inc. (S.D.N.Y. 1994).

This is because "[a]n essential aspect [of enforceable restraints on employee mobility] is the employer's continued willingness to employ the party covenanting not to compete." Post v. Merrill Lynch, Pierce, Fenner & Smith, Inc. (1979). "Enforcing a noncompetition provision when the employee has been discharged without cause would be 'unconscionable' because it would destroy the mutuality of obligation on which a covenant not to compete is based. This rationale applies with equal force to covenants not to solicit a former employer's clients and employees; solicitation is simply a form of competition." Arakelian v. Omnicare, Inc. (S.D.N.Y. 2010)(internal citations omitted).

If you have any questions concerning the enforceability of your non-compete agreement, it's always smart to consult with a New York non-compete attorney.