Restrictive Covenants

Restrictive Covenant Agreements are used for multiple purposes, with the most common one being Employment Agreements. However, Restrictive Covenant Agreements can be used in other business situations, including but not limited to, Independent Contractor Agreements, joint ventures, cooperative agreements between different business entities, or even when contemplating selling a business.  Some common types of restrictive covenants are:

An agreement can include one or multiple restrictive covenants.


Using the “independent consideration” doctrine, a restrictive covenant agreement cannot be imposed on an existing relationship, unless the party subject to the agreement receives something of value in return for executing the agreement.  This consideration could include employment. However, for current employees or if there is a current business relationship, signing a restrictive covenant agreement in exchange for continued employment or a continued business relationship may not be enough.  In an employment relationship, other benefits like an increase in salary, bonus or promotion may be required.  For other types of relationships, a new overall agreement may be necessary.  The issue of consideration differs from state to state.

If your business needs some type of Restrictive Covenant Agreement, our attorneys have experience drafting such agreements.  If you are presented with such an agreement, we can review the agreement and advise you as to whether the agreement is appropriate for your situation.

Our attorneys offer a Complimentary Consultation to learn about your specific circumstances, answer your questions and provide you with a recommended action plan for your specific needs.  There is no obligation and no cost.

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