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Employment law for businesses
Employment Agreements
Employment relationships in New York are governed by a combination of federal law, New York State law, and New York City law where applicable. The agreements you use to structure those relationships, from offer letters and employment contracts to non-competes and separation agreements, must comply with this layered legal framework while protecting your legitimate business interests.
Parandian Law drafts and reviews employment agreements for New York businesses across all stages of the employment relationship. We advise employers on structuring agreements that are enforceable, compliant with current New York law, and practical for the business to administer.
New York employment law changes frequently. Non-compete enforceability, wage and hour requirements, and restrictive covenant standards have all shifted significantly in recent years. We advise clients on the current state of the law rather than recycling outdated templates.
Offer Letters · Employment Contracts · Non-Compete · Non-Solicitation · NDA · Independent Contractor · Separation Agreement · Executive Compensation · New York Employment Law
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New York employment law framework
Employment agreements — the essentials
New York is an at-will employment state, meaning either party can terminate the relationship at any time for any lawful reason unless a contract provides otherwise. Most New York employers use offer letters rather than formal employment contracts for standard hires. Offer letters should confirm the at-will nature of the relationship, state the compensation and benefits, and avoid language that implies job security or guaranteed employment duration.
Restrictive covenants, including non-compete and non-solicitation agreements, are enforceable in New York under a reasonableness standard. The covenant must protect a legitimate business interest, be reasonable in duration and geographic scope, and not impose undue hardship on the employee. New York courts regularly blue-pencil or void overly broad restrictive covenants. Independent contractor agreements require careful drafting to reflect the actual nature of the relationship and comply with New York’s strict independent contractor classification standards.
Key FACTS
Employment default:
At-will in New York
Non-compete standard:
Reasonableness test
Non-compete duration
Typically 6 to 24 months
IC misclassification:
Significant penalties in NY
Separation agreements:
21 days to consider if over 40
OWBPA compliance:
Required for age discrimination waiver
Wage theft prevention:
Written notice required at hire
Non-disclosure:
Generally enforceable in NY
What we handle
Generally enforceable in NY
Employment agreement drafting and review for New York businesses at every stage of the employment relationship.
Offer letters and employment contracts
Drafting of offer letters and formal employment agreements that confirm the at-will relationship, state compensation and benefits clearly, and include appropriate confidentiality and IP assignment provisions.
Non-compete and restrictive covenant agreements
Drafting and review of non-compete, non-solicitation, and non-disclosure agreements that are enforceable under New York’s reasonableness standard and tailored to the specific business interest being protected.
Independent contractor agreements
Drafting of independent contractor agreements that reflect the actual working relationship and comply with New York’s strict classification standards, reducing misclassification exposure for the business.
Separation and severance agreements
Drafting of separation agreements and severance packages for departing employees, including OWBPA-compliant release language for employees over 40, confidentiality provisions, and non-disparagement clauses.
How it works
Our employment agreement process
01
Relationship and risk assessment
We discuss the employment relationship, the specific business interests to be protected, and the applicable New York law requirements before drafting anything.
02
Agreement drafting
We draft the agreement tailored to the specific situation, including the appropriate restrictive covenants, confidentiality provisions, and compensation terms for the role and the business.
03
Review and compliance check
We review the draft against current New York law requirements, including wage theft prevention notice requirements, OWBPA compliance for separation agreements, and independent contractor classification standards.
04
Execution and implementation
We advise on proper timing and method of presenting agreements to employees, including consideration requirements for post-hire agreements and the 21-day review period for separation agreements involving employees over 40.
Common questions
Employment agreements FAQ
Should I use an offer letter or a formal employment contract?
For most hires, an offer letter is the right approach. It confirms the key terms of employment without creating contractual obligations that limit your flexibility as an employer. A formal employment contract is appropriate for senior executives, key employees whose departure would be highly disruptive, or situations where you are offering guaranteed compensation or a defined term of employment in exchange for the employee leaving a secure position. The choice between offer letter and contract affects your obligations significantly, and we advise on the right approach for each situation.
Are non-compete agreements enforceable in New York?
Non-compete agreements between employers and employees are enforceable in New York but subject to a strict reasonableness test. The agreement must protect a legitimate business interest such as trade secrets or customer relationships. It must be reasonable in duration, typically no more than one to two years, and in geographic scope. It must not impose undue hardship on the employee. New York courts regularly blue-pencil provisions they find overly broad rather than voiding the entire agreement. We draft non-competes to maximize enforceability while protecting the specific interests of the business.
What is the difference between an employee and an independent contractor in New York?
New York applies a multi-factor test to determine whether a worker is an employee or an independent contractor. The most important factors are the degree of control the business exercises over how the work is done, whether the worker can work for other clients, and whether the worker provides their own tools and sets their own schedule. Misclassifying an employee as an independent contractor exposes the business to significant liability under New York labor law, including back wages, benefits, unemployment insurance, and civil penalties. We review the actual working relationship before drafting any independent contractor agreement.
What must a separation agreement include to be enforceable in New York?
A separation agreement that includes a release of claims must meet several requirements to be enforceable. The employee must receive something of value beyond what they are already owed in exchange for the release. The release must be written in plain language and specifically reference the claims being released. For employees over 40, the Older Workers Benefit Protection Act requires that the employee be given 21 days to consider the agreement and 7 days to revoke after signing. Failure to comply with OWBPA requirements voids the release of age discrimination claims. We draft separation agreements that comply with all applicable requirements.
Related services
Often considered alongside Business Formation
Need employment agreements reviewed or drafted?
New York employment law changes frequently. Speak with an attorney before using outdated templates or agreements from other states.
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Use our secure intake form to tell us about your matter. We review every submission personally and respond within one business day.