Unpacking The (Un)Reasonableness Of Non-Compete Provisions

New York law generally does not favor non-compete agreements, viewing them as unreasonable restraint of trade. As a result, New York courts apply a rigorous standard when deciding whether to enforce these restrictive agreements. The strict standard was demonstrated in Multiplier Inc. v. Moreno, et al. In Multiplier Inc., the Manhattan Commercial Division considered a request to enforce a non-compete provision against a former employer, while scrutinizing the provision in question to determine whether it was reasonable and necessary to protect legitimate business interests.

Defendant-Employee Joins Plaintiff-Company and Signs Non-Compete Agreement

Plaintiff Multiplier Inc. d/b/a Harness Wealth ("Harness") is a startup company that focuses in providing financial and tax strategies for equity stock options, business ownership, and equity partnerships. Defendant Laura Moreno joined the team as a Senior Tax Manager in the summer of 2020. Moreno was instrumental in