Is It Time To Rethink Non-Competition Agreements?

Despite guidance to the contrary, some employers insist that employees sign arduous noncompetition agreements as a condition of employment, without regard to their role at the company. Some of these employers may reason that even if such agreements are not enforceable, they may help deter a former employee from joining a competitor. New York Attorney General Eric Schneiderman (the "AG") has suddenly established his office as an advocate for eliminating the overuse of such agreements.

Utilizing the investigatory authority the AG has to protect the state's workers pursuant to New York Executive Law § 63(12), the AG's Labor Bureau recently disclosed the conclusion of three inquiries into the improper use of noncompetition agreements. The employers were Law360, Jimmy John's and Examination Management Services Inc. ("EMSI"), and each investigation concerned distinct employee populations and income levels. Each employer agreed to cease its broad use of