Using Restrictive Covenants to Protect Your Business

A key employee just resigned, took a thumb-drive containing gigabytes of your company’s confidential information, and is now working for your competitor.  Your clients and candidates are being solicited and key employees are receiving job offers enticing them to leave. What do you do?  What could you have done to prepare for this?

In these situations, many businesses find turn to the restrictive covenants in employment and other agreements for protection.  But what agreements provide the protection you need?  

This seminar will:

Discuss the different types of “restrictive covenants” and when to use each.

    a.   “Non-Compete,”

    b.   “Non-Solicit, Non-Accept and Non-Service,”

    c.   “Non-Poach,”

    d.  “Confidentiality provisions” including those treating the use of social and business media such as Facebook and Linkedin, and “Notice” provisions. 


Discuss common misconceptions about restrictive covenants including that many business owners mistakenly believe that:

a.     New York disfavors restrictive covenants and courts won’t enforce them so they cannot be useful. (Incorrect.)

b.     Old, boilerplate agreements containing restrictive covenants provide adequate protection. (They do not.)

c.     It is a good idea when learning that an employee was planning to leave and start a new business to preemptively terminate that employee. (It is not.)

d.     We are protected because our employee handbook contains restrictive covenants. (Your Employee Handbook probably says it is not a contract.)

e.     It is advisable to “wait and see” what happens before taking action (You do not want to sit on your rights.), and

f.     Owners are treated exactly like employees. (They are not.)

Register here:

Sponsored by:   Tarter Krinsky and Drogin