Noncompete and Restrictive Covenants

Employers want to protect their businesses and often will require employees to sign restrictive covenants at the outset of employment.  A restrictive covenant is a broad phrase for clauses in contracts which restrict an employee’s ability to compete after the employment ends.  In general, they must be reasonable in terms of the scope.  For example, a non-compete with a limited geographic scope of 10 miles with a one-year time limit is much more likely to be enforced than a broad non-compete with a two-year time frame.  Non-solicitation or anti-piracy clauses are more likely to be reasonable than non-competes.  Confidentiality agreements are even more likely to be enforceable if they are reasonably limited to the employers’ business interests.  The particular circumstances of each case matters.  Thus, when it comes to non-competes and restrictive covenants both employers and employees should seek experienced counsel. ​