In the sixth installment of our 2022 Trade Secrets Webinar Series, Seyfarth attorneys Dawn Mertineit and Robyn Marsh discussed tips and best practices for multijurisdictional businesses when it comes to restrictive covenants, including non-compete and non-solicitation agreements.
As a conclusion to this webinar, we compiled a summary of takeaways:
- There is no "one-size-fits-all" way to prepare a restrictive covenants agreement for multiple jurisdictions. Employers should consider whether they want one single agreement that can be used for their entire workforce population (including across multiple jurisdictions, for both new and existing employees, and/or for various tiers of employees), or different permutations. Seyfarth attorneys can help you determine which is the best fit for your business.
- Be wary of overbroad drafting. Even in states in which a court can judicially reform an overbroad agreement, the clear trend does not favor employers who implement extraordinarily broad covenants with an in terrorem effect.
- New legislation is creating more and more challenging hurdles to enforcement of non-competes. Employers should be particularly mindful of fee-shifting provisions (or other financial penalties) and choice of law/forum selection requirements.
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