Question 1

Are non-compete agreements enforceable in New York?

Accepted Answer

Yes, but only if they meet strict requirements. Under BDO Seidman v. Hirshberg (93 N.Y.2d 382), a non-compete must: (1) protect a legitimate business interest, (2) not impose undue hardship, (3) not harm the public, and (4) be reasonable in time and geographic scope. Courts can 'blue pencil' (modify) overly broad restrictions. IMPORTANT: The NY legislature nearly banned non-competes in 2023 (passed both chambers, vetoed by the Governor) — the legal landscape is evolving rapidly, and future legislation restricting or banning non-competes is likely.

Question 2

What does the Freelance Isn't Free Act require?

Accepted Answer

For any freelance engagement of $800 or more (single payment or aggregated over 120 days), the hiring party must provide a written contract that includes: names and addresses of both parties, itemized services and value, compensation rate and method, payment due date, and service submission deadline. Payment must be made within 30 days of completion if no date is specified. Anti-retaliation protections apply, and violations can result in double damages, injunctive relief, and attorneys' fees. The law went statewide in August 2024.

Question 3

What are the security deposit rules in New York?

Accepted Answer

Under the Housing Stability and Tenant Protection Act (HSTPA) of 2019, security deposits are capped at one month's rent for all residential tenancies. The deposit must be held in an interest-bearing account at a New York State bank. It must be returned within 14 days of lease termination with an itemized statement. Late fees are limited to $50 or 5% of rent (whichever is less) and can only be charged after rent is 5+ days late.

Question 4

Do NDAs have special restrictions in New York?

Accepted Answer

Yes, particularly for sexual harassment claims. Under GOL § 5-336, any non-disclosure provision related to a sexual harassment claim requires a 21-day consideration period and 7-day revocation period, and the complainant must affirmatively prefer confidentiality. Additionally, mandatory arbitration of sexual harassment claims is prohibited under CPLR § 7515. Our NDA templates automatically include these required protections and whistleblower carveouts.

Question 5

What makes NYC employment law different from the rest of New York State?

Accepted Answer

NYC has several additional protections: (1) The NYC Human Rights Law (Admin. Code § 8-107) is one of the broadest anti-discrimination laws in the US, applying to employers with just 4+ employees and covering additional protected categories. (2) NYC's salary transparency law requires compensation ranges in job postings. (3) The NYC Earned Safe and Sick Time Act provides up to 56 hours of paid safe and sick time. (4) Rent stabilization applies to many NYC apartments. Our templates detect NYC-relevant provisions and include them automatically.

Question 6

What is the NY WARN Act and how is it different from federal WARN?

Accepted Answer

The New York WARN Act requires 90 days' advance written notice for mass layoffs, plant closings, or relocations — that's 30 days more than the federal WARN Act's 60-day requirement. It also applies to smaller layoffs: 25 or more employees at a single site of employment (vs. 100 employees under federal WARN). Our employment templates reference these requirements.

Question 7

Can I choose New York law to govern my contract even if I'm not in New York?

Accepted Answer

Yes, under GOL § 5-1401, parties to a contract involving $250,000 or more may choose New York law to govern, even without any other connection to the state. This makes New York law a popular choice for large commercial contracts. For contracts under $250,000, there generally must be some reasonable relationship to New York.

New York Contract Templates Built for the Empire State's Complex Legal Landscape

Built for New York law

Available contract types

Non-Disclosure Agreement

Freelance Contract

Lease Agreement

Service Agreement

Employment Agreement

Independent Contractor Agreement

Consulting Agreement

Partnership Agreement

Non-Compete/Non-Disclosure Agreement

Licensing Agreement

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