Less is More: Restrictive Covenants Part II

As noted in our previous post, courts will not enforce a restrictive covenant against a departing employee unless the former employer can show the restraints imposed are reasonable between the parties and in reference to the public interest. So consider,
1.  Is there a legitimate business interest being protected?
2.  Is the restraint imposed reasonable, and not beyond what is necessary to protect the employer's legitimate business interests, particularly in terms of its duration, geographic scope and the activities restrained?
3. Is the language clear?

There is no bright line rule for establishing the duration of a non-compete, but usually employers seek a year. If the non-compete is tied to a commercial transaction, such as where the employee is selling an interest in the business yet continuing to work, a longer period will be enforced by the courts.  We encourage you to consider: do you really need a year? The shorter the time, the easier to enforce.