A restrictive covenant agreement, also known as a non-compete agreement, is a common employment contract used to protect an employer`s business interests. In New York, these agreements are enforceable under certain circumstances, but there are restrictions on their use.

Under New York law, a restrictive covenant agreement must be reasonable in scope, geographic area, and duration. The agreement must also protect a legitimate business interest, such as trade secrets or confidential information. If the agreement is too broad or unreasonable, a court may find it unenforceable.

The scope of the agreement refers to the activities that are restricted by the employee. For example, if an employee works in the advertising industry, a restrictive covenant agreement may prohibit them from working for a competitor in the same industry. The geographic area of the agreement refers to the geographic region where the restriction applies. Finally, the duration of the agreement refers to the length of time the restriction is in effect.

There are certain professions in New York where restrictive covenant agreements are not enforceable by law. For example, doctors and lawyers are exempt from these agreements, as they are viewed as essential professions with a public interest. Additionally, non-compete agreements cannot be enforced against low-wage workers, such as those earning minimum wage.

Employers must also provide something of value in return for the employee`s agreement to the restrictive covenant. This is known as consideration, and it can take the form of a signing bonus, stock options, or increased compensation. Without consideration, the agreement may be considered void.

Overall, a restrictive covenant agreement can be a useful tool for employers to protect their business interests, but they must be reasonable in scope and meet certain criteria to be enforceable under New York law. Employers should consult with legal counsel to ensure that their agreements comply with all applicable laws and regulations.