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New York Court of Appeals Addresses Restrictive Covenants
The New York Court of Appeals made a judgement last week which impacts both employees and employers throughout the state. On July 24, 2015, the Court of Appeals addressed two issues in Brown & Brown v. Johnson, 25 N.Y.3d 364 pertaining to restrictive covenants. The issues addressed were regarding enforcement of the law provision in an employment contract and the allowance to blue pencil the restrictive covenant at issue.
“With this Decision the Court of Appeals reminds employers that a ‘one size fits all’ approach to restrictive covenants is not a wise decision,” said Ryan Finn, Attorney at E. Stewart Jones Hacker Murphy. “If an employer wants to enforce an agreement limiting its former employees from competing, the employer needs to document its reasons, and limit the scope of the agreement to avoid over-reaching.”
For further information regarding this decision, please visit here.