The Case Law Firm
Restrictive Covenants, including Non-Compete Agreements
Employees may be asked to sign several restrictive covenants either at the beginning or end of their employment.
There are a variety of different covenants such as:
• Non-Disclosure/Confidentiality - These agreements typically prohibit the disclosure of confidential and proprietary information obtained during employment. In some instances, the use of this information is also prohibited. At the highest level, these agreements protect Trade Secrets.
• Non-Solicitation – These agreements may prohibit employees from stealing other employees to bring to a new firm or may prevent the solicitation of clients. For example, taking a client list may violate a non-solicitation agreement.
• Non-Compete – While these clauses sound similar to non-solicitation, they are more restrictive because an employee agrees not to compete with the former employer for a certain time period, typically 1-3 years, in a certain geographic location. While restrictions in employment contracts are not void per se, the geographic and time limitations must be reasonable and not go beyond what is necessary to protect the employer, usually to protect confidential information.
Furthermore, even if an employee has not signed a specific contract, the law of fiduciary duties places some restrictions on employees even after the employee has terminated his employment. Whether one of these clauses is being enforced against you or you want advice before signing an agreement, The Case Law Firm has the experience and knowledge to deal with these restrictive covenants and best protect employee’s rights.