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What are Restrictive Covenants?

A restrictive covenant is a contract clause that prohibits a party from doing something. The most common restrictive covenants in employment contracts is the non-compete clause that restricts, employees with special knowledge, training, or special ties to the customer base from

  • working for a competitor or in the same industry;
  • starting a competing business; or
  • soliciting your employer’s clients or customers

for a period of time after the contract ends or is terminated.
The aim of these clauses is to keep the former employee from using sensitive information (trade secrets, client lists and information, business methods) to aid in competing with the former employer.  Before you sign a contract that contains a non-compete clause, consult an experienced trial lawyer. If you’ve already signed such a contract, the restrictive covenant may or may not be enforceable by your former employer, or it may be partially enforceable, depending on the terms of the clause and the facts of your subsequent employment. However, a non-compete clause may not lawfully prohibit you from working at all.

How do I know what a non-compete clause looks like?

I have a restrictive covenant problem

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