Common Restrictive Covenant Clauses Employees Should Carefully Review
Starting a new job or leaving an existing position can feel uncertain. Discovering that an employment agreement restricts where you can work, which clients you can contact, or what information you can use afterward can add another source of concern. These provisions can affect important career decisions, so review them carefully before you sign an agreement or make your next professional move.
Restrictive covenants can include non-compete, non-solicitation, confidentiality, and related provisions. Their language and potential effect on your employment can differ considerably from one agreement to another. At Oberle Law, PLLC, we can help you evaluate what a provision says, how New York law treats the restriction, and what obligations could continue after employment ends.
If you need assistance with reviewing restrictive covenants and employment-related agreements, contact us to schedule a free consultation. Located in Bohemia, New York, we serve clients throughout Long Island. Reach out to us to discuss an agreement before making decisions that could affect your employment or future opportunities.
Non-Compete Clauses Can Restrict Future Employment
A non-compete clause generally restricts certain competitive activity after an employment relationship ends. Depending on its wording, the provision can address the type of work you can perform, businesses you can work for, geographic areas, or the length of time the restriction applies.
New York courts don't automatically enforce every non-compete provision simply because an employee signed it. The courts will generally examine whether a restraint is reasonable and whether it protects a legitimate business interest without imposing an unreasonable burden on the employee.
An experienced New York employment contract review lawyer can review the actual language rather than assuming a restrictive provision is either fully enforceable or completely invalid. Corporate guidance can also help you evaluate how the agreement relates to your position, responsibilities, access to confidential information, and future employment plans.
Non-Solicitation Clauses Can Affect Business Relationships
Non-solicitation provisions commonly focus on relationships rather than prohibiting employment with a competitor. An agreement can restrict contact with certain customers, clients, employees, or other business relationships after your employment ends. Different clauses can prohibit different types of conduct. When reviewing a non-solicitation clause, several provisions deserve close attention:
Restricted relationships: Identify whether the agreement addresses customers, prospective customers, employees, vendors, or another defined group.
Restricted conduct: Review whether the provision prohibits direct solicitation, indirect solicitation, servicing certain clients, or other specified activity.
Restricted period: Determine how long the obligations continue after your employment relationship ends.
Defined terms: Pay attention to how terms such as “customer,” “client,” or “solicit” are defined within the agreement.
These details can significantly affect how a provision applies to your future employment. Reviewing them before accepting a new position, contacting former clients, or starting a business can help you make decisions with a clearer picture of your contractual obligations.
Confidentiality Clauses Can Continue After Employment
Confidentiality provisions address information an employer considers private or commercially sensitive. These clauses can cover trade secrets, customer information, financial information, business strategies, internal processes, and other nonpublic materials obtained through employment.
Some agreements describe protected information specifically, while others use broader language. An attorney can help you review what the agreement covers, whether it includes exceptions, and which obligations continue after employment ends.
Employees should also distinguish confidential business information from their general knowledge, abilities, and professional experience. A confidentiality clause doesn't necessarily mean every piece of information learned during employment receives the same legal treatment.
Confidentiality obligations can also interact with non-solicitation and non-compete provisions. Reviewing the agreement as a whole can clarify how several restrictions may affect the same future employment opportunity or business activity.
Additional Restrictions Can Affect Post-Employment Decisions
Employment agreements can contain restrictions beyond the clauses employees commonly recognize. Intellectual property provisions, return-of-property requirements, notice obligations, and employee-recruitment clauses can all affect what happens when employment ends. Before making a career transition, it can be useful to review provisions such as:
Employee non-recruitment: Some agreements restrict efforts to recruit former coworkers for another employer or business venture.
Intellectual property: Agreements can address ownership of inventions, creative work, business materials, or other work developed during employment.
Return of property: Employees can have obligations concerning devices, documents, files, records, and other employer-owned materials.
Notice requirements: An agreement can establish procedures or notice periods connected to resignation or other employment decisions.
Reviewing these provisions together matters because one career decision can trigger several contractual obligations. An attorney can help you identify which clauses deserve attention before you resign, accept another position, communicate with former business contacts, or pursue a new venture.
Contact an Experienced New York Attorney for Guidance Today
Restrictive covenants can feel intimidating when your livelihood or next professional opportunity is at stake. You shouldn't have to guess what an agreement permits or prohibits. Carefully reviewing your agreements before signing can help clarify the language, identify relevant restrictions, and explain how applicable New York law relates to your circumstances.
At Oberle Law, PLLC, our attorney, Constance Oberle Geoghan, can help you review your proposed agreement before you sign it or evaluate existing obligations before you take a new position. This can provide important context when restrictive covenants affect decisions about employment, clients, confidential information, or future business activity.
Located in Bohemia, New York, we serve individuals throughout Long Island. If you're concerned about how a restrictive covenant could affect your career, reach out today to schedule a free consultation and discuss your agreement and available options.
