A New York non-solicitation agreement is a contract in which an employee agrees not to solicit company customers and workforce for their own interest. During their employment and for a set duration after their termination, the signing party will not be allowed to engage in business with the employer’s customers, or if applicable, personnel.

A non-solicitation agreement is also often used to prevent a business owner from selling their business then soliciting the same client base, thus devaluing the buyer’s purchase. To be enforceable, the limits placed on the signee must be reasonable in protecting the owner’s business interests.

Statutes: N/A
Legally Enforceable? An agreement is enforceable with the below requirements and exceptions.
Requirements/Exceptions:
- The agreement’s restrictions must be limited to protecting the business’s legitimate interests and cannot cause unnecessary injury to the signee or public (BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999))
- The agreement cannot prevent customers from continuing to use the services of a registered financial industry employee; however, the covenant may prevent the employee from soliciting customers (FINRA Rs. 2140 and 11870).

Related Forms

New York Non-Compete Agreement – A document that prevents employees from entering into competition with their employer during their employment and for a period after their employment ends.