Enforceable Non-Compete
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Introduction
How do you keep key departing employees from hurting your business relationships? You could ask them to sign an agreement restricting their ability to compete for a specified period of time after they are terminated. These may be called Restrictive Covenants or Non-Compete Agreements.
There are two basic kinds of restrictive covenants. The traditional “non-compete” prohibits the employee from competing against the company in the same business in a certain geographic area for a specific period of time. The more limited “non-soliciting” or “non-servicing” covenant allows an employee to keep working in the same business, but prohibits the employee from soliciting business from or rendering services to the company’s clients for a specified period of time.
