Jonas Urba, a New York employment lawyer, here with Employment Law Reality Check. Restrictive covenants and noncompetition agreements are different but they share similarities. Those similarities often rely on the relationships that you have developed while employed. If your employer is paying for you to meet contacts, business prospects, future interests which an employer may want to pursue, those relationships which they foster are protected, and for good reason. Because if the employer’s bottom line is affected or their profits decrease upon your departure, the employer could sue you. And your new employer could be served with what’s called a cease and desist letter. That’s the worst scenario. You left your prior job and now you could lose your new job because the employer could be served with this letter which might force it to fire you. Many employees have no idea what they’ve agreed to with a signature. Some of those restrictive covenants and non-competes can be pretty long and they’re complicated. Sometimes, even employers don’t understand them. Best thing to do is to call some employment lawyers. Call me. I serve the entire state of New York and I can be reached at (212) 731-4776. Attorney Advertising.
In 2023 the FTC proposes banning noncompetition agreements. The appeals and legal challenges may be lengthy but worth following. These contracts and clauses affect all levels of employees. Lawsuits may arise against employers who attempt to intimidate or threaten employees seeking better jobs if this proposal becomes law.