Less is More: When Embedding Restrictive Covenants in Multiple Agreements Can Lead to Choppy Waters for Employers

When seeking to protect against unfair competition from former employees through the use of restrictive covenants, companies often take a “belts and suspenders” approach. For example, an employer may require an employee to agree to the same (or substantially similar) covenants in an employment agreement, a stock plan, an incentive award agreement, and any other agreements executed by the employee. The theory behind this approach is straightforward: if one agreement is found to be unenforceable...
By: Weil, Gotshal & Manges LLP

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