"What's In A Name?" A Shortened Restrictive Covenant Duration, Perhaps

Many restrictive covenant agreements rely on various abbreviations to streamline the contractual language, including most notably the use of "Company" as a stand-in for the employer's name. Additionally, these agreements often state that they inure to the benefit of the employer's parent, subsidiaries, and other affiliates. However, a recent case in federal court demonstrates the importance of carefully defining terms to best protect the employer's legitimate business interests.

In Schnitzer Steel Indus., Inc. v. Dingman, the United State District Court for the District of Rhode Island considered the plaintiff/former employer Schnitzer's motion for a temporary restraining order against its former employee, James Dingman. Dingman, initially a resident of Rhode Island, was first hired by one of Schnitzer's subsidiaries, Metals Recycling LLC ("Metals"), and signed an employment agreement in Metals' favor prohibiting him form engaging in a similar business for the