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Are There Risks To NDAs And Noncompete Agreements?

Last updated on May 6, 2025

Business owners have a great deal of incentive to protect their businesses using whatever legal means are available. Noncompete agreements (noncompetes) and nondisclosure agreements (NDAs) have long been major tools in this pursuit, but they may not be as impactful in New York.

At Sutton Sachs Meyer PLLC, we have worked in New York and New Jersey for a long time, and our lawyers have dedicated themselves to the issues facing businesses. In dealing with protective covenants, such as NDAs and noncompetes, we provide our clients with the information they need to be successful in their pursuit.

The Drawbacks And Limits Of Noncompetes And NDAs

Not worrying about competition from former employees or about sensitive information going public is extremely attractive. However, confidentiality agreements and restrictive covenants have real limits that you must understand:

  • They are not endless: A noncompete must be limited in time period to be at all enforceable. An NDA without an expiration is unenforceable in New York.
  • They are not all-covering: A noncompete without boundaries on the scope of action is unenforceable.
  • They may not last: New York lawmakers are pushing to ban NDAs.

These limits and challenges are something you will have to consider as you pursue a restrictive covenant. With our team on your side, we can provide you with impactful information that will help guide you.

We Can Enforce Your Agreements

Despite the limitations and possible risks of using NDAs and noncompetes, they are still enforceable. When you find that someone has violated your agreements with them, we can build the case and pursue action. We are a versatile group of attorneys who can take your issue head-on.

Thorough. Consistent. Respected.

We’re proud of the reputation we’ve built for business owners across New York City. We help companies deal with the potential conflicts they have in every aspect of their business. We listen to you and create strategies tailor-made for your situation. Call 212-884-9727 or send an email using this form to learn more about how we can help you.