Category Archives: Restrictive Covenants

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White House Call to Action to Limit Non-Competes

Earlier this year, the White House and Treasury issued reports criticizing the widespread use of non-compete agreements. They found that such agreements affect nearly one in five U.S. workers, or approximately 30 million people. Last week the White House expanded its efforts, issuing a Call to Action for states to reform and limit non-compete agreements, … Continue Reading

If It Seems Like Florida’s Restrictive Covenant Statute Is Too Good to Be True…That’s Because It May Be

When it comes to the principle of freedom to enter into contracts, “freedom’s just another word” for “as long as you don’t bump up against a more important legal principle.” Indeed, the “freedom of contract is a qualified and not an absolute right.” Chicago, Burlington & Quincy R.R. Co. v. McGuire, 219 U.S. 549, 567 … Continue Reading

What Color is Maryland’s Pencil? Judicial Modification of Maryland Noncompetes

Consider the following sample non-compete provision in an employment agreement for a salesperson: Employee agrees not to work as a salesperson for any company that competes with Employer for a period of two years following Employee’s separation from employment in the following regions: Maryland, the District of Columbia, and Virginia. Geographically overbroad? Could be. Too … Continue Reading

Don’t Let Your Integration Clause Bite You: How Employers Sometimes Unintentionally Cancel Restrictive Covenants

Integration clauses are common boilerplate in employee separation agreements. These clauses, sometimes also referred to as “merger clauses,” set forth the parties’ understanding that their entire agreement is set forth within the four corners of the document they’ve signed. If properly drafted, an integration clause helps nip in the bud a future claim arising from … Continue Reading