Category Archives: Restrictive Covenants

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Fifth Circuit Clarifies and Complicates Choice of Law Analysis of Interstate Restrictive Covenants

As companies grow and expand into multiple U.S. states, particularly in our increasingly knowledge and relationship-based economy, determining the applicable law for companywide restrictive covenants can be puzzling. Determining which law applies can make the difference between enforcement or the inability to enforce the covenants. In Cardoni et al. v. Prosperity Bank (Case Nos. 14-20682 … Continue Reading

Proposed Restrictive Covenant Law Threatens to Handcuff Employers

Prepared by: Brian Confino Most businesses possess confidential information or trade secrets that need to be safe-guarded, or intellectual property, equipment, or processes that set them apart from their competition. Many companies choose to protect this information using “restrictive covenants” – agreements in which employees promise not to compete with the business in the future, … Continue Reading

Are Restrictive Covenants Enforceable in California? It Depends.

In California, it is well established that non-compete provisions are unenforceable, subject to certain statutory exceptions. But what about non-compete provisions that are ambiguous as to their protection of confidential information or trade secrets? Recently, when faced with such a provision, one California federal court narrowly construed the provision to find it enforceable.… Continue Reading
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