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.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The interpretation of the scope of application of the investor’s right to withdraw from any contracts for the placement of door-to-door financial products has again captured the attention of all players.
Tax Newsletter — July/August 2014: SAT strengthens reporting request under China CFC rules; and more
DLA Piper has released the July/August edition of its Tax Newsletter, which provides a review of PRC and Hong Kong tax developments.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions