Published on January 29th, 2014 by Alan L Sklover
What is the meaning of:
Quite simply, a “Restrictive Covenant” is a “Promise to Limit Future Freedom.”
The most common examples of restrictive covenants are (a) promises not to work for your employer’s competitors in the future (“non-compete” agreements), (b) promises not to solicit business from your employer’s customers in the future (“non-solicitation” agreements), and (c) promises not to hire your employer’s employees in the future (“no hire” agreements.”)
In addition, promises not to share confidential or proprietary information belonging to your employer (“confidentiality agreements”) are also kinds of restrictive covenants.
You need to take all restrictive covenants seriously for two important reasons: (i) First, prospective employers may decide not to hire you if your anticipated duties might result in an allegation of violation of one of these agreements, because the prospective employer would fear it could be involved in a lawsuit. (ii) Also, ignoring the potential impact of a restrictive covenant could involve you in a lawsuit, which would inevitably be disruptive or harmful to your career.
Fortunately, restrictive covenants can be “navigated,” negotiated, defended against, and, quite often, defeated. That takes some knowledge, insight and perspective on restrictive covenants.
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