join our network! affiliate login  
Custom Search
GET OUR FREE EMAIL NEWSLETTERS!
Daily and Weekly Editions • Articles • Alerts • Expert Advice • Learn More
Search Workipedia:  
« Go Back

restrictive covenant

Redirected from: restrictive_covenants

A restrictive covenant is a legal obligation imposed in a contract.  Bascially, one party agrees not to do something as a part of the bargain that makes up the contract.

In the employment context, restrictive covenants can come in many forms, but the most common restrictions are non compete covenants, non solicitation covenants, and non disclosure covenants.

If you are a business owner or represent a company, you should carefully consider whether this type of restriction is needed for particular employees.  In many instances, these agreements afford an employer valuable protection against unfair competition.  The classic example is a high-level sales employee who has gained valuable information and contacts as a result of working for a company.  That said, many employers attempt to have employees sign non-compete agreements where there is no real danger to their business.

In many states, these agreements are difficult and costly to enforce.  This is particularly true where an employee is terminated for economic reasons or poor performance.

Perhaps the best question that an employer can ask themselves is whether they would pay an employee not to work, rather than have that employee work for a competitor.  The answer may not dictate whether you require a restrictive covenant, but it should shed light on the issue of harm suffered as a result of the competitive behavior.  Regardless, it would be wise for employers to include their demand for restrictive covenant early in any negotiation with a prospective employee.

Lawyer Login: Workipedia • EL Match

Auto-login Show name as online

Forgot your password?I Want To Participate!

Workipedia Navigation

Our Editors:

Most Active Contributors:

How To Contribute

Stats:

  • Page Views: 0
  • Logged in Attorneys:
  • Total guests:

Ogletree Deakins | California | The Opportunities and Obligations of Venture Capital and Private Equity in the #MeToo Environment (February 01, 2018)

Fisher Phillips | California | Glimmers of Hope? Pair of Recent PAGA Cases Provide Rare Procedural Victories for California Employers (January 31, 2018)

Fisher Phillips | California | DLSE Publishes Voluntary Template for Required Employer AB 450 Notice (February 11, 2018)

Ogletree Deakins | California | California’s Salary History Ban: Answers to Frequently Asked Questions (January 23, 2018)

Fisher Phillips | California | The ICEman Cometh? Recent War of Words Puts California Employers in the Crosshairs of National Immigration Debate (January 22, 2018)

Ogletree Deakins | California | Cal/OSHA Approves Long-Awaited Housekeeper Injury Prevention Regulations (January 24, 2018)

Jackson Lewis P.C. | California | Trial Court Properly Denied Attorneys’ Fees To Plaintiff Who Proved His Termination Was Substantially Motivated By His Disabilities, But Was Not The Prevailing Party At Trial (January 21, 2018)

Fisher Phillips | California | Cal/OSHA Approves Hotel Housekeeping Injury Standard – Likely to Go Into Effect Later This Year (January 21, 2018)

Jackson Lewis P.C. | California | California Labor Department Releases Form for Employers Responding to Immigration Agency Inspection (February 12, 2018)

Jackson Lewis P.C. | California | Exemption, Not Pre-Emption: California Federal Court Clarifies Meal and Rest Break Rules May Be Exempt From Labor Code Enforcement For Employers With Valid Collective Bargaining Agreements (February 14, 2018)