ALTERATIONS TO NON-COMPETE AGREEMENTS: Current Landscape for 2026

Both federally and in New York State, legislators and Departments of Labor have pushed for laws removing or limiting the use of non-competes to restrict employees from working in their field of choice after exiting employment. While New York Courts have already limited an employer’s ability to create “unreasonable” restrictions, the state has yet to successfully codify a full statutory ban.

What to Expect: The New York Senate continues to debate this issue, and it is reasonable to expect a definitive law in 2026. Proposed legislation (S4641) aims to ban non-competes for those earning less than $500,000 and for healthcare professionals. Whether any passed law will have reasonable exceptions or be retroactive remains uncertain. Regardless, employers should be conscious of this shifting landscape when drafting new employment agreements.