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Jurisdiction update, July 28, 2026

New York: enforceability of restrictive covenants

Imani Osei-BonsuHead of Legal Engineering7 min read

The problem

The short version: New York: enforceability of restrictive covenants is easier to get wrong than most teams assume, and the failure is usually silent.

What makes this hard is that the signal is distributed. A single clause read in isolation looks fine. Read against the definitions section and two schedules, the same clause does something different.

What we do about it

The register is the deliverable. A finding without an owner and a date is an observation, not a control.

In the current build this runs as part of the standard pass, so it applies to every document in the set rather than only the ones someone thought to check.

Where it breaks

Scanned originals with poor image quality remain the weakest input. So do agreements that were assembled from three precedents and never reconciled, which is common in long-lived supplier relationships.

We will revisit this once we have a larger sample. The current numbers are directional rather than settled.

practiceredlining

Working notes from the Lawrs team. General information about legal technology and practice, not legal advice.