Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.
Missouri Employee Restrictive Covenants
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FAQ
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
Enter the restrictive covenant ? a widely used contractual clause in the U.S. which restricts a terminating employee from engaging in various competitive activities for a defined, post-employment period.
Alternatively, one could record a termination of covenant, if both parties to the original covenant?or their successors?agree to the termination. Covenants can also be terminated by courts, upon a showing of illegality, abandonment, or even changed circumstances (i.e., inequitable to continue enforcing said covenant).
§ 431.202 RSMo. This statute provides, among other things, a non-solicitation covenant between an employer and employee is presumed reasonable when it seeks to protect a protectable interest and ?its postemployment duration is no more than one year.? Id.
If the employer terminated him simply to save money or for another reason unrelated to the employee's job performance, the employer is most likely not entitled to enforce the restrictive covenants.
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
The most common types of post-employment restrictive covenants include non-competition clauses and restrictions prohibiting the solicitation of customers/ clients and employees, each of which are in effect both during the employment relationship and for defined period thereafter (e.g. six months).
Missouri non-compete agreements are generally enforceable to the extent necessary to protect the employer's trade secrets and customers. However, such protection is balanced with the right of employees to freely work where they choose.
