Restrictive covenants in the US: navigating the quagmire of enforceability

By Barbara J Harris

Post-employment restrictive covenants in the context of employment relationships have long posed challenges for employers. Both the nature of the agreement and the context in which it is entered into affect the enforceability of restrictive covenants. The lack of a unified or ‘national’ body of law on restrictive covenants within the US further complicates the issue.

For example, in some states, restrictive covenants are governed by the common law of contracts and will generally be enforced if they are ‘reasonable’ under the circumstances. Yet even the concept of what is ‘reasonable’ varies from state to state. Other states have enacted statutes specifically governing restrictive covenants, often imposing strict requirements on the enforcement of the covenants and, in some cases, virtually prohibiting them.

Ultimately, the enforceability of any restrictive covenant will depend on which state’s law applies, which in turn may depend on where the dispute is litigated…

If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from DLA Piper

View more briefings from DLA Piper

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

3 Noble Street
London
EC2V 7EE
UK
http://www.dlapiper.com

Turnover (£m): 1,566.29
No. of lawyers: 3,961 (UK 200)
Jurisdiction: global
No. of offices: more than 75
No. of qualified lawyers: 625 (International 50)

Jobs