Confidentiality and Non-Compete Clauses in Employment Contracts

Many employers utilize employment contracts containing restrictive covenants in order to protect their legitimate interests in their customers and proprietary business information. Restrictive covenants include non-compete, non-solicit and non-disclosure/confidentiality covenants. They ensure that the employment contracts contain provisions which restrict the employee from engaging in activities which would be detrimental to the employer’s business, both during and after the employment relationship. The validity and enforceability of restrictive covenants during the currency of the employment period is usually undebatable. What is frequently litigated upon, however, is the extent, if at all, of their enforceability after the termination of employment.

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