Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.
North Carolina Employee Restrictive Covenants
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How to fill out Employee Restrictive Covenants?
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FAQ
Restrictive covenants can generally be found in one of three forms: non-disclosure, non-solicitation, and non-compete clauses. Sometimes their usage is a reasonable attempt to ensure the success of the business.
The other types of restrictive covenants found in employment contracts are non-disparagement, non-interference and non-solicitation.
The most common types of post-employment restrictive covenants include non-competition clauses and restrictions prohibiting the solicitation of customers/ clients and employees, each of which are in effect both during the employment relationship and for defined period thereafter (e.g. six months).
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
For example, restrictive covenants can prevent owners and tenants from making certain renovations, having pets, parking RVs in the driveway, or raising livestock.
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
Non-compete agreements are not viewed favorably under North Carolina law. To be valid, they must be designed to protect a legitimate business interest of the employer. If it is too broad to be considered a reasonable protection of the employer's business, it will not be enforced.
When a party enters into a restrictive covenant, he/she agrees to refrain from doing something or from using a property in a certain way that is restricted by the contract. For example, when purchasing real estate, the buyer may agree to use the property for the designated purpose only and not for other purposes.
