Restrictive Covenants and Confidentiality

Courts look for reasonable limits on duration, geography, and the activities restricted, plus adequate consideration for the promise. The rules vary a lot by state, some require consideration beyond just continued employment, and some bar or sharply limit non-competes entirely. Because the law is shifting, an agreement that's enforceable in one state may be void in another, so the terms have to be matched to where the employee works.

A trade secret is information that has economic value because it isn't generally known and that you protect with reasonable secrecy measures; it's protected under the Defend Trade Secrets Act and state trade-secret laws. Confidential information is broader and can include material that doesn't rise to trade-secret status but is still protected by contract. The practical difference is that trade-secret status carries statutory remedies, while plain confidential information relies on your agreement.

Hold an exit interview that reminds them of their obligations, collect all company property and data, and preserve the relevant electronic records in case you need them later. Stay alert for signs of a violation, and consider sending a reminder letter to the departing employee and, where appropriate, their new employer. Doing this consistently both reduces leaks and strengthens your position if you later have to enforce the agreement.

You can seek an injunction to stop the ongoing violation, monetary damages for lost business, disgorgement of profits, and sometimes an extension of the restricted period or attorneys' fees. Temporary restraining orders and preliminary injunctions are the tools for fast, early relief while the case proceeds. Because these covenants often turn on speed, moving quickly when you spot a breach matters.