02 Nov 2021
Market Trends in the Use of Post-Employment Restrictive Covenants
Traditional non-competition clauses in the employment setting prohibit the employee from engaging in activities that would or would be likely to compete with the business activities of the employer. The scope of such provisions is sometimes limited to a designated geographical area and often is stipulated to last during the period of employment and for a specific period after the employment period terminates. Using Market Standards–Employment Agreements, we’ve assembled this 2017-2021 (mid-year) report that has some eye-catching details on the topic.
Related Content
- Restrictive Covenant Basics, Including Adequate Consideration, Protectable Interests, Geographic and Time Restrictions, and Permissible Scope
See how restrictive covenants allow employers to safeguard their competitive interests; confidential, proprietary, and trade secret information; and customer, client, and employee relationships. These clauses or agreements may limit an employee’s ability to use or disclose the employer’s confidential information or trade secrets, to compete with his or her employer, or to solicit clients or employees of the employer after termination of employment. But a restrictive covenant’s limitations upon employee activities must be balanced with the inherent right of employees to pursue employment. - Restrictive Covenants Resource Kit
Learn more about both non-jurisdictional and state-specific drafting, negotiating, and litigating restrictive covenants, including non-competes, employee and customer non-solicitation agreements, confidentiality agreements, and assignment of inventions agreements.
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- Employee Benefits & Executive Compensation Key Legal Developments Tracker
Stay informed on new developments.- ERISA
DOL announces that, for the period December 21, 2021, through January 31, 2022, it will not pursue prohibited transactions claims against investment advice fiduciaries who are working diligently and in good faith to comply with the Impartial Conduct Standards for transactions that are exempted in Prohibited Transaction Exemption 2020-02 or treat such fiduciaries as violating the applicable prohibited transaction rules. Further, DOL announced that it will not enforce the specific documentation and disclosure requirements for rollovers in PTE 2020-02 through June 30, 2022. All other requirements of the exemption will be subject to full enforcement as of February 1, 2022. DOL Field Assistance Bulletin 2021-02.
DOL announces proposed rule that would eliminate requirements introduced under 2020 rule-making (see 85 Fed. Reg. 72,846 (Nov. 13, 2020) and 85 Fed. Reg. 81,658 (Dec. 16, 2020)) deemed to have a potential chilling effect on ERISA fiduciaries’ ability to consider environmental, social, and governance (ESG) factors in the selection of investments and exercise of shareholder rights, reversing the skeptical stance taken by the previous administration toward ESG investing. 86 Fed. Reg. 57,272 (Oct. 14, 2021); Regulatory Ping Pong: DOL Releases Proposed Rule on Considering ESG Factors in ERISA Plan Investing. - ERISA Litigation
Two settlement agreements filed on August 11, 2021, provide that United Healthcare Insurance Co., United Behavioral Health, and Oxford Health Insurance Inc. together will pay more than $15.6 million to settle allegations that they violated Mental Health Parity and Addiction Equity Act (MHPAEA) requirements. United Health Strikes Deal to End Mental Health Policy Suits.
- ERISA
- Retirement Plans
IRS has released guidance in the form of frequently asked questions (FAQs) to address employer concerns regarding partial retirement of employees and addressing what constitutes a bona fide retirement.
- Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
- The Practical Guidance Journal Fall 2021 Edition features Environmental, Social, and Governance guidance.
- Check out the new Practical Guidance Author Center! Learn about the 1500+ leading attorney authors contributing to our 20 practice areas, and find out how you can Become a Practical Guidance Author.
- New Practical Guidance Content
Experience results today with practical guidance, legal research, and data-driven insights—all in one place.
Experience Lexis+