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

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.

Non-competes are increasingly hard to enforce, especially after the FTC tried to ban them (even though that got blocked). New York has been cracking down on overly broad non-competes.

First step: Pull out your employment agreement and read exactly what you signed. Look for:

• The exact geographic scope
• The exact duration
• What activities are actually prohibited
• Whether you got any consideration (payment, bonus, promotion) when you signed it

New York courts won't enforce non-competes that are too broad in scope or duration. "All of software sales" and "entire state" sound way too broad to me.

Employment attorney in New York here. Non-competes are heavily scrutinized in NY and often not enforced as written.

New York courts apply a reasonableness test with three factors:

1. Scope: Is it no broader than necessary to protect the employer's legitimate business interests?
2. Duration: Is the time restriction reasonable?
3. Geographic area: Is the territory restriction reasonable?

A statewide ban on "software sales" for 2 years is almost certainly overbroad. Courts will look at what you actually did, what confidential information you had access to, and whether the new role truly competes.

Also important: Under NY law passed in 2023, non-competes are only enforceable against employees making over $115,000/year (or $137,500 for higher-ups). Were you over that threshold?

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"?

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.

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?

Don't ignore it. They could file for a preliminary injunction, which would force you into court quickly and potentially stop you from starting your new job while litigation is pending.

Better approach: Have an attorney send a response letter explaining why the non-compete is unenforceable. Point out:

• Overbroad geographic scope (entire state)
• Overbroad industry restriction (all software sales)
• Different market segments, different customers, no competitive overlap
• No legitimate protectable interest being threatened

Most of these cases settle. Employers send cease and desist letters hoping you'll just quit your new job. When they realize you have a strong defense and are willing to fight, they often back down because litigation is expensive.

Cost to have an attorney send a response letter: $1,500-$3,000 typically. Much cheaper than losing a new job opportunity.

I had almost this exact situation. Former employer sent me a C&D when I joined a competitor. I hired a lawyer, we sent a response explaining all the reasons the non-compete was unenforceable, and never heard from them again.

Total cost was $2,200. Best money I ever spent. The stress of worrying about it was killing me.

Also, make sure your new employer knows about this. They might help with legal fees - a lot of companies have policies to defend employees against non-compete claims because they don't want to lose good hires.

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?

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.

Update: Met with an employment attorney yesterday. She reviewed the non-compete and said it's "laughably overbroad" and likely unenforceable under current NY law.

She's drafting a response letter citing NY's new restrictions on non-competes, the overbroad scope, and the lack of competitive overlap. Her fee is $1,800 flat rate for the letter and one round of follow-up if needed.

She said in her 15 years of practice, she's seen maybe 2-3 cases where a software sales non-compete this broad was actually enforced. Usually the employer backs down once they get a lawyer's response.

Feeling much better about this. Starting my new job Monday.

Glad you found good counsel. Your attorney is right - these almost never go to litigation when the employee has a strong defense.

One final tip: Document everything about your new role. Save your job description, notes about customer segments you're targeting, training materials, etc. If they do sue, you want clear evidence that you're not competing with them in any meaningful way.

And keep honoring that NDA. That's the one agreement they could enforce easily, so don't give them ammunition by sharing confidential information.

Heads up for anyone following this thread - New York is making more moves on non-competes in 2026. The state legislature reintroduced the non-compete ban bill (S.3100) in January, and this time it has broader co-sponsorship than the version Governor Hochul vetoed in late 2023.

The new version would ban non-competes entirely for employees earning under $250K and severely restrict them even above that threshold. It also includes a private right of action, meaning employees could sue employers who try to enforce banned non-competes and recover liquidated damages plus attorneys' fees.

Even if the bill doesn't pass this session, the trend is unmistakable. Courts are taking notice of the legislative intent and becoming even more skeptical of broad non-competes. I've seen several NY judges in 2025-2026 cite the failed ban as evidence that "the policy winds are blowing against enforcement" when declining to grant injunctions.

@TechSales_Jason - curious if you ever heard back from your former employer after your attorney sent the response letter?

Just want to say this thread was incredibly helpful to me. I was in a nearly identical situation - left a cloud infrastructure company in NYC for a competitor, got a scary-sounding C&D letter two weeks later. My non-compete was 18 months and covered "cloud computing services in the tri-state area."

I was panicking and seriously considering turning down my new offer. Found this thread, showed it to my wife, and we decided to consult an attorney. He basically said the same thing as @EmploymentLawyer_NYC - overbroad scope, likely unenforceable, and the cost to send a strong response letter was $2,000.

My attorney sent the response letter in December. Never heard a single word back. Not a follow-up letter, not a lawsuit filing, nothing. My old employer was bluffing the entire time, just like @StartupBro said happens in most of these cases.

If you're reading this in the middle of a non-compete scare: breathe, get a lawyer, and don't make any rash decisions based on a threatening letter. These companies rely on intimidation because they know the law usually isn't on their side.