Venable counsel Nick Reiter was quoted in a March 26, 2017, Newsday article on the use of non-compete employment agreements in New York. While not prohibited in the state, lawmakers and courts have tended to disapprove of their use because they can prevent workers from pursuing their careers. A New York appellate court recently declined to uphold non-compete agreements after a company terminates an employee without cause.
Commenting on the court ruling, Reiter said the decision moves "closer to a bright line rule where if an employer fires an employee without cause," a non-compete agreement will not hold up. "That means employers should re-evaluate whether their contractual definitions of termination 'for cause' are worded appropriately to maximize the likelihood that their noncompetition agreements can be enforced," he added.