Former employer threatening to sue me over non-compete - claims I can't work in tech sales anywhere in NY for 2 years

I publish illustrative scenarios prepared by my practice. All participants and conversations are fictional. The fictional posts are not posts by real users, accounts of client experiences, or reports of actual results.
Illustrative scenario prepared by my practice.
For informational purposes only. Non-compete enforceability varies significantly by state. Consult with an employment attorney in your jurisdiction.
Hypothetical question

I quit my sales job at a SaaS company in NYC 3 weeks ago. I was making $85K base plus commission. I gave 2 weeks notice, left on good terms (or so I thought).

Just accepted a new position at a different SaaS company - better pay, better product, totally different market segment. My old company sold HR software, new company sells cybersecurity solutions. Different customers, different industry.

Yesterday I got a cease and desist letter from my old employer's attorney. They're claiming I signed a non-compete that bars me from working "in software sales anywhere in New York State for 24 months after separation."

I did sign something when I started 3 years ago, but I was desperate for a job and didn't read it carefully. I honestly don't even remember a non-compete clause.

Can they actually enforce this? 2 years seems insane, and "anywhere in New York State" is my entire job market. I live here, my family is here, I can't just move.

Illustrative response

I found my employment agreement. The non-compete section says:

"Employee agrees not to engage in any business activity competitive with the Company's business within the State of New York for a period of 24 months following termination of employment. This includes but is not limited to employment with any entity engaged in the sale or marketing of software products."

My total compensation last year was $142K (base + commission). So I'm over that $115K threshold mentioned.

But my new company sells cybersecurity to financial institutions. My old company sold HR software to mid-market companies. Are those really "competitive"?

Illustrative response

The language "sale or marketing of software products" is absurdly broad. That's like half the tech industry in New York.

Courts look at whether the employer has a legitimate protectable interest - typically trade secrets, confidential customer lists, or specialized training they provided. They don't get to lock you out of your entire profession just because you worked there.

Questions to consider:

  • Did you have access to truly confidential information (customer lists, pricing strategies, proprietary tech)?
  • Are you soliciting your old employer's specific clients?
  • Did your old employer invest heavily in training you in skills specific to their business?

If the answer is no, their non-compete is probably just a scare tactic.

Illustrative response

I had access to customer lists, but I'm not contacting any of those customers. Different industry, different buyer personas entirely. HR directors vs. CISOs.

As for training - I went through their standard 2-week sales onboarding. Nothing proprietary, just generic MEDDIC sales methodology that's used everywhere.

I did sign an NDA which I'm absolutely honoring. I haven't shared any confidential info and won't. But this non-compete feels like they're trying to punish me for leaving.

What happens if I just ignore the cease and desist and start my new job anyway?

Illustrative response

Honestly, good point about telling my new employer. I was worried it would make them rescind the offer, but you're right that they should know.

I told my new manager about the cease and desist. He said it happens all the time in tech sales and their legal team will review it. He's confident it won't be an issue but said I should get my own attorney too.

Looking for employment lawyers in NYC now. Any recommendations for what to look for?

Illustrative response

Look for an attorney who:

  1. Specializes in employment law (not general practice)
  2. Has specific experience with non-compete disputes in New York
  3. Offers a flat fee for the response letter (not hourly billing that could spiral)
  4. Is willing to have a free or low-cost initial consultation

Bring your employment agreement, the cease and desist letter, and details about your old and new roles to the consultation. This is a straightforward case - shouldn't require extensive litigation.

Illustrative response

Important clarification on arbitration: if your contract has a mandatory arbitration clause, you generally CAN'T sue in court. But here's the thing โ€” filing for arbitration is often MORE intimidating to companies because they have to pay the arbitration fees (often $3,000-5,000 for the company's share). Use this to your advantage.