Negotiating Out Of Restrictive Covenants

Authored by employment lawyer Wendi S. Lazar. Negotiating restrictive covenants has become an essential part of practicing employment law as companies aggressively move, in a still faltering employment market, to restrict their employees’ right to compete in the workplace. Whether employees are bound by a confidentiality agreement, restricted from working in a particular industry or prevented from bringing clients with them in a career move, these restrictions impose “real life” as well as legal consequences.

In negotiating these agreements, employee’s counsel must consider the relevant facts and law. Analysis of New York law, both common and case law, and the criteria for enforcement are critical to any effective negotiation. Just as important is knowing your client’s needs when employment ends and understanding the employer’s goals in imposing these restrictions.

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