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.

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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.
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  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.

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