Restrictive Covenants and Confidentiality

Enforceability requires reasonable scope in duration, geography, and activity restrictions, supported by adequate consideration. Requirements vary significantly by state—some require consideration beyond continued employment, and some states prohibit or severely limit non-competes.

Trade secrets are information deriving economic value from not being generally known, protected by reasonable secrecy measures under the Defend Trade Secrets Act and state laws. Confidential information is a broader category that may include information not meeting the trade secret threshold but still protected by agreement.

Conduct exit interviews reinforcing obligations, remind departing employees of their agreements, secure return of all company property and data, preserve relevant electronic records, and monitor for potential violations. Consider sending reminder letters to departing employees and their new employers.

Remedies include injunctive relief to prevent ongoing violations, monetary damages for lost business, disgorgement of profits, extension of the restricted period, and in some cases attorneys' fees. Temporary restraining orders and preliminary injunctions provide urgent relief.