7 Steps To Enhance Post-Employment Restrictive Covenants

Corporate Counsel

Employers often enter into post-employment restrictive covenants (commonly referred to as non-compete agreements) with employees only to find that when the employees leave, the restrictive covenants are not enforceable or do not provide sufficient value to the company.

Here are seven steps to improve post-employment restrictions:

1. Identify the Legitimate Interest to be Protected

An employer must have a legitimate interest that will be protected by restraining an employee's ability to compete. Protecting trade secrets, confidential information, or unique relationships with clients are generally recognized in many states as legitimate interests that will support enforcement of a restrictive covenant. For example, when an employee has access to marketing or product development plans, the employer may have a legitimate protectable interest in preventing the employee from using knowledge of that confidential information for a