Are non-compete agreements enforceable in California?

No. Under California Business and Professions Code Section 16600, almost all non-compete agreements are void and unenforceable, regardless of how narrowly they are drafted.

Does New York enforce non-compete agreements?

Yes, New York enforces non-competes if they are reasonable in time, geography, and scope, and are necessary to protect legitimate employer interests like trade secrets.

A TermScore is an AI-generated risk rating from 0 to 100 that evaluates the fairness and risk level of any legal document. A score of 86-100 means the contract is highly favorable, while 0-30 indicates dangerous terms you should walk away from.

What types of documents can TermScore analyze?

TermScore analyzes any legal document including freelance contracts, employment agreements, residential leases, NDAs, brand sponsorship deals, SaaS vendor agreements, and rental applications. Upload PDFs, Word documents, or images.

How much does TermScore cost?

TermScore offers a free plan with 3 scores per month. The Team plan is $15/month for 30 scores, and the Professional plan is $50/month for 500 scores with team collaboration features. One-time purchases are also available: a single score for $5 or a 5-pack for $15, with no subscription required.

Is my document data secure?

Yes. Documents are processed in memory and analysis results are stored encrypted. TermScore never shares your document data with third parties and you can delete your data at any time from your dashboard.

What are my rights regarding non-compete agreements in California vs New York?

In California, non-compete agreements are effectively void under Business and Professions Code Section 16600, offering employees near-total mobility. Conversely, New York enforces non-competes if they are reasonable in scope, duration, and geography, and serve a legitimate business interest, such as protecting trade secrets or specialized training.

Non-Compete Enforceability: California vs. New York

The legal landscape for restrictive covenants is polarized between these two states. Understanding your rights requires knowing which jurisdiction governs your employment contract.

Feature	California	New York
General Rule	Void (BPC 16600)	Enforceable if reasonable
Reasonableness Test	N/A	Required (Time, Scope, Geography)
Trade Secret Exception	Limited protection only	Strong protection
Employer Penalty	Potential civil liability	None (unless overly broad)

California: The Employee-Friendly Standard

California maintains a public policy favoring open competition. Since 2024, Senate Bill 699 and Assembly Bill 1076 have reinforced that employers cannot even attempt to enforce void non-competes. Attempting to include one in a contract is now a civil violation.

Void by Statute: Any contract restraining an individual from engaging in a lawful profession, trade, or business is void.
Notice Requirement: Employers must notify current and former employees (employed after Jan 1, 2022) that any existing non-compete clauses are void.
Extraterritorial Reach: California courts may refuse to enforce non-competes signed in other states if the employee is now working in California.

Key takeaway: If you work in California, a non-compete clause in your contract is legally toothless. You do not need to negotiate its removal to accept a new job, though you should ensure your employer is compliant with current notification laws.

New York: The Reasonableness Standard

New York courts apply a "reasonableness" test. A non-compete is only valid if it is no greater than required for the protection of the legitimate interest of the employer, does not impose undue hardship on the employee, and is not injurious to the public.

Legitimate Interests: Protection of trade secrets, confidential customer lists, or unique services.
Scope Limitations: The restriction must be limited to the specific geographic area where the employee actually worked.
Duration: Courts typically scrutinize agreements lasting longer than 6 to 12 months.

How to Evaluate Your Risk

Identify the Governing Law: Check the "Choice of Law" clause in your contract.
Assess the Scope: Is the restriction limited to a specific role or a broad industry ban?
Review Trade Secret Language: Ensure the contract distinguishes between "general knowledge" and "proprietary trade secrets."

Key takeaway: In New York, if a non-compete is overly broad, courts may "blue-pencil" (rewrite) it or strike it down entirely. Never assume a signed contract is automatically enforceable; consult the specific "reasonableness" factors.

Practical Steps for Employees

If you are presented with a restrictive covenant, take these steps to protect your career mobility:

Request Narrowing: Ask for specific exclusions for "general industry knowledge" or "non-client-related activities."
Define Geography: Ensure the restriction is limited to the specific city or region where you performed your duties.
Time Caps: Negotiate for a shorter duration, ideally under 6 months.

TermScore allows you to upload your employment agreement to instantly identify restrictive covenants and assess their enforceability based on your specific state jurisdiction. By highlighting high-risk clauses before you sign, TermScore empowers you to negotiate from a position of clarity and legal clarity.