Enforceability requires a protectable interest, reasonable duration and geographic scope, and consistency with public policy. Several states void employment non-competes entirely while permitting sale-of-business covenants.
The regulatory landscape continues shifting.
Alternative Names:
Restrictive Covenant (Employment)|Covenant Not to Compete
Why it Matters?
Enforceability varies so sharply that a covenant valid in one state is void in another, which makes multistate workforce covenants a per-state drafting exercise rather than a uniform template. Choice of law clauses selecting a permissive state are frequently disregarded where the employee works in a state voiding non-competes. Layering non-solicitation and confidentiality provisions preserves protection where the non-compete fails.
Frequently Confused with
Related terms
Frequently asked questions
Do choice of law clauses preserve enforceability?
What preserves protection where the covenant fails?
