What Employers and Employees Need to Know About Restrictive Covenants?

Learning Objectives

• To discuss how to evaluate a restrictive covenant, including a non-compete agreement, before accepting a job offer or before signing a new agreement with your existing employer. 
• To analyze the key types of restrictive covenants, more than just non-compete agreements, that can affect your ability to earn a living or change jobs in the future. 
• To explain how to evaluate your options when you have a restrictive covenant agreement and want to change jobs.
• To analyze what types of non-compete provisions and other restrictions you can enforce as an employer or business owner.
• To inspect and learn as an employer or business owner what you need to ask prospective employees about any restrictive covenants they signed that could affect their ability to work for your business.
• To discuss trends in the law disfavoring restrictive covenants and what to expect in the future.

Course Description

Embark on an insightful journey through the intricacies of restrictive covenants with our online webinar. When we're offered a job, we often overlook the restrictive covenants that might impact our future job changes. These covenants can surface as conditions for new employment or can be presented to existing employees and independent contractors. The widely known Non-Compete Agreement limits departing workers from pursuing jobs in similar industries to their current roles, affecting their career mobility. However, not all agreements are enforceable or even legal, potentially creating issues for employers proposing these limitations.

These covenants span various categories like confidentiality, non-competition, non-solicitation of customers and employees, and non-disparagement. They usually bind workers from engaging in specific businesses within defined geographical areas for extended periods, influencing their career options significantly. Assessing enforceability, jurisdiction, and repercussions becomes crucial before binding oneself or accepting certain job roles, and understanding the limitations they impose on livelihoods.

For employers and business owners, understanding the implications of restrictive covenants is paramount to avoid legal entanglements. Ensuring compliance and evaluating the enforceability of such covenants, whether at the hiring stage or upon an employee's departure, becomes vital. Employers need to navigate whether potential hires are bound by such restrictions that might be violated by joining the company. Awareness of rights and responsibilities is key to sidestep legal battles and their consequential fallout.

Major Topics Covered:

• The obligations of employees and employers to clients and customers when employees leave 
• The obligations of employees and employers to each other when joining or leaving employment
• How to keep appropriate records to show that you complied with your obligations as an employee or an employer.
• How it relates to non-compete agreements and other restrictive covenants as an employee and as an employer.
• How to transition from one job to another without burning bridges on either side.
• How to avoid and resolve disputes and reduce legal risk when an employee is hired or leaves.

This CPE Business Law Course serves as a comprehensive guide for employers and employees alike, unraveling the complexities of restrictive covenants, and empowering both parties with the knowledge needed to navigate these agreements effectively and responsibly.

Overview

• What affects the rights & responsibilities for employees & employers?

  7 mins
• The beginning: prepare for the new job search

  14 mins
• How employers can protect interests when leaves

  20 mins
• Are your restrictive covenants enforceable?

  38 mins
• Employer/employer hiring considerations

  45 mins
• Review of key restrictive covenants

  52 mins