Are Workplace Confidentiality Agreements Enforceable in New York?

Confidentiality agreements have become a standard part of many workplaces. Employers often use them to protect sensitive information such as trade secrets, business strategies, or client lists.

But for employees, the question is simple: are these agreements actually enforceable in New York?

The answer depends on the details.

Why Employers Use Confidentiality Agreements

Companies rely on confidentiality agreements to safeguard valuable information. Without them, employees could walk away with insider knowledge that gives competitors an edge. These agreements are also meant to protect client relationships, financial data, or intellectual property.

From the employer’s perspective, requiring workers to sign one feels like a smart business move. For employees, though, it can raise concerns about what they are agreeing to and whether the agreement can hold up in court.

Enforceability Depends on Reasonableness

In New York, confidentiality agreements can be enforced, but only if they are considered reasonable. A court will look at whether the agreement protects legitimate business interests without unfairly limiting an employee’s rights.

For example, a narrowly tailored agreement that prevents sharing specific trade secrets is far more likely to be upheld than one that attempts to restrict general industry knowledge. Courts are cautious about agreements that go too far, especially if they limit an employee’s ability to work in their chosen field.

What Employees Should Watch For

Not all confidentiality agreements are created equal. Some use vague or overly broad language that leaves employees guessing about what they can and cannot do. Others may try to restrict activities far beyond what is necessary to protect an employer’s interests.

Employees should pay close attention to the following:

• Scope of the agreement: Does it clearly define what information is considered confidential?
• Duration: How long are you restricted from disclosing or using certain information?
• Impact on your career: Does it make it difficult for you to find work in your field?
• Understanding these details before signing can save a great deal of stress later.

When Disputes Arise

Disagreements about confidentiality agreements often surface when someone leaves a job. An employer may claim that a former employee shared protected information or went to work for a competitor in violation of the agreement.

In these cases, courts in New York weigh the specifics of the agreement against state policies that protect workers’ rights. If the agreement is too broad or restrictive, it may not stand. But if it is carefully written and tied to genuine business concerns, it can be enforced.

Protecting Your Rights

Employees should never assume that signing a confidentiality agreement means they have no options. Courts regularly strike down agreements that overreach. Still, it often takes legal guidance to know whether a contract is enforceable or not.

If you are asked to sign one of these agreements or are facing a dispute with a former employer, consulting with an attorney is the best step you can take.

Contact an Attorney

Confidentiality agreements in New York can be enforceable, but not all are. The terms must be reasonable, fair, and designed to protect legitimate business interests. If an agreement seems overly broad or threatens your career opportunities, it may not hold up.

At Borrelli & Associates, P.L.L.C., we help employees understand their rights and navigate disputes involving confidentiality agreements and other workplace contracts. If you are unsure about an agreement or facing a conflict, contact us today for guidance and support.