TD Securities is facing a legal challenge from a former trader who contends that the non-compete provision he signed is overly broad and unenforceable. The complaint, filed in New York state court, alleges that TD’s restrictions unreasonably bar him from pursuing employment in his field, effectively impairing his ability to work. (via Law.com)
According to the lawsuit, the non-compete restricts the former employee from working for any competing financial institution in multiple jurisdictions and for an extended period beyond termination. The plaintiff argues the scope is disproportionate to any legitimate business interest such as protecting confidential information or client relationships.
In challenging the covenant, the plaintiff emphasizes that courts—especially in New York—often scrutinize non-competes for reasonableness in terms of time, geography, and scope. Excessive restrictions may be struck down or narrowed as a matter of contract and public policy.
For employers in financial services and other knowledge-based sectors, the case serves as a reminder that non-competes must be carefully tailored and defensible. Overbroad restrictions risk invalidation, while under-protected agreements may fail to preserve legitimate interests.
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