Restrictive Covenants and Non-Compete Agreements

Restrictive covenants, also known as non-compete agreements, and non-disclosure agreements are often critical to protecting the interests of a business.  These contracts are contracts not to compete or disclosure confidential information and are executed by employees, officers and directors.

These types of agreements may often be enforced by securing a temporary restraining order or injunction and are the often subject of litigation involving former employees and competitors.

Restrictive Covenant Lawyers

If you are involved in a dispute involving the terms of a restrictive covenant, an experienced attorney will help you navigate the difficult issues that are involved in non-compete and Attorneys for Restrictive Covenantsrestrictive covenant litigation.

Call Jay McDaniel at 973-602-3915 with your questions or concerns or to discuss a specific dispute.  You can also use our on-line form to arrange a consultation.  There is no charge for our initial discussion and we will be happy to give you an overview of your options.

Restrictive Covenants and Non-Compete Agreements

While restrictive covenant, non-compete and non-disclosure agreements are common in the business environment, court will impose significant limits on their enforceability.

  • A restrictive covenant or non-compete agreement must be reasonable in scope or geographic limitation. Courts will not enforce agreements that are overly broad under the circumstances.
  • A restrictive covenant or non-compete agreement must be for a reasonable duration. Courts will refuse to enforce or limit agreements that are for too long a time period.
  • Courts will consider public policy and the ability of the former employee to work in their field in enforcement lawsuits.
  • Courts will examine carefully the business interests that the company seeking to enforce a restrictive covenant is trying to protect.

Disclosure of Confidential Information Lawsuit

Restrictive covenants are often closely tied to the issue of protecting vital information that may be confidential or proprietary.  Court’s will look carefully at the nature of the information before they will find that there is a reason to prevent its disclosure.

Companies that seek to press claims that restrict the use or disclosure of confidential information will be required to show that the information is not publicly known, that it is important to their business and that the business took reasonable steps to protect it.

Companies that bring on new employees may find themselves subject to a claim that the employee is subject to a restrictive covenant, a non-compete agreement or some other duty not to use or disclose information.

The company facing such a claim needs to understand the limits of a competitors right to use contracts to limit competition.

Whether you are prosecuting or defending a breach of contract, our firm can help. Call us at 973-602-3915 to discuss your matter.