Occupation limits
New York Non-Compete Law (2026): No ban yet; Senate-passed
New York has not banned noncompetes. Enforcement still runs through the BDO Seidman reasonableness test, which asks whether the restraint is necessary to protect a real interest, tolerable for the employee, and harmless to the public, and courts here will narrow an overbroad covenant that was drafted in good faith. The Senate has now passed a ban two years running, most recently S9759 by a 40-21 vote on June 3, 2026, but the Assembly has never taken it up and Governor Hochul vetoed the earlier version in December 2023. The only noncompete prohibition actually on the books applies to non-management broadcast employees.
The rule
How New York treats non-compete agreements
The chokepoint has consistently been the Assembly, not the Senate, and a Senate floor vote in a two-year session says little about whether a bill reaches the Governor. Also worth noting that S9759 is prospective only, so even enactment would leave existing covenants intact, and that New York's broadcast-industry ban already shows the Legislature's preference for sector-specific fixes.
If you are an employer
Keep enforcing tailored covenants, since nothing has changed legally, but track the Assembly Labor Committee closely and start identifying which employees would clear a $500,000 exemption and which clinical roles would be protected outright.
If you are a worker
Do not assume New York has banned noncompetes; it has not, and yours is likely enforceable if it is narrow and tied to confidential information or unique services.
| Classification | Reasonableness standard with a broadcast-industry statutory ban; broad ban passed the Senate, not enacted |
|---|---|
| Pay threshold | None in effect. S9759 would exempt employees averaging $500,000 or more in annual cash compensation, indexed for inflation, but would still protect health-related professionals above that figure. |
| Maximum term | No statutory ceiling. New York courts commonly accept six to twelve months and grow skeptical past a year absent an unusual interest. |
| Notice or consideration | None today. S9759 would require employers to post notice of workers' rights under the new section. |
| Primary statute | No general statute; common law governs. N.Y. Labor Law § 202-k bans noncompetes for non-management broadcast industry employees. Proposed: N.Y. Labor Law § 191-d (S9759 / A10023). |
Detail
What has changed, and what is still moving
Legislation 2024–2026
Nothing has been enacted. Governor Hochul vetoed S3100A, a near-total ban, in December 2023 after objecting to the absence of an income threshold. The Senate passed S4641A on June 9, 2025 and it died in the Assembly. The Senate then passed the successor, S9759, by 40-21 on June 3, 2026. It is now before the Assembly Labor Committee with no vote scheduled, and no New York noncompete ban is law as of August 2026.
Bills to watch
S9759 (Gianaris) and its Assembly companion A10023 remain live in the 2025-2026 session. They would add Labor Law § 191-d, barring employers from seeking, requiring, demanding, accepting or enforcing a noncompete against covered individuals; exempt only employees averaging $500,000 or more and sellers disposing of at least a 15% ownership stake; protect health-related professionals at any income level; reach remote workers who report to a New York supervisor; operate prospectively from 30 days after signing; and allow liquidated damages up to $10,000 per covered individual plus lost compensation and attorney's fees. A separate cluster of narrower bills covering health care and low-wage workers is also pending.
Leading cases
BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999), controls: a covenant is enforceable only so far as it is reasonable in time and area, necessary to protect a legitimate interest, not unduly burdensome on the employee, and not harmful to the public. Reed, Roberts Associates v. Strauman, 40 N.Y.2d 303 (1976), limits legitimate interests to trade secrets, confidential customer lists, and genuinely unique services.
If you have one in hand
What can make a non-compete unenforceable in New York
- Your occupation is carved out. Reasonableness standard with a broadcast-industry statutory ban; broad ban passed the Senate, not enacted
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in New York.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
New York non-compete questions
Are non-compete agreements enforceable in New York?
New York has not banned noncompetes. Enforcement still runs through the BDO Seidman reasonableness test, which asks whether the restraint is necessary to protect a real interest, tolerable for the employee, and harmless to the public, and courts here will narrow an overbroad covenant that was drafted in good faith. The Senate has now passed a ban two years running, most recently S9759 by a 40-21 vote on June 3, 2026, but the Assembly has never taken it up and Governor Hochul vetoed the earlier version in December 2023. The only noncompete prohibition actually on the books applies to non-management broadcast employees.
How long can a non-compete last in New York?
No statutory ceiling. New York courts commonly accept six to twelve months and grow skeptical past a year absent an unusual interest.
Is there a minimum salary for non-competes in New York?
No. New York sets no income floor, so pay alone does not decide whether a covenant binds you. The test is whether the restriction goes further than the employer's legitimate interest requires in time, geography and scope of work.
What notice or consideration does New York require?
None today. S9759 would require employers to post notice of workers' rights under the new section.
Sources
How this entry was checked
- Primary source. No general statute; common law governs. N.Y. Labor Law § 202-k bans noncompetes for non-management broadcast industry employees. Proposed: N.Y. Labor Law § 191-d (S9759 / A10023). — the statutory text itself.
- Secondary sources consulted. N.Y. Senate bill pages (S9759, S4641A, S3100A), Sullivan & Cromwell, Duane Morris, JTNY, N.Y. Labor Law § 202-k, BDO Seidman v. Hirshberg.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.