Executive Compensation / Covenants Not to Compete |
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The "dot-com" boom of the mid-'90s saw a dramatic rise in so-called covenants not to compete (CNTC). Emerging technologies and an ultra-competitive atmosphere, created by the high number of start-up companies, led employers to attempt to bind their employees to incredibly broad CNTCs. As employees attempt to continue their careers with new employers, they often encounter legal difficulties and need legal assistance extricating themselves from these restrictive covenants.
Katz, Marshall, & Banks attorneys, led by Ari Wilkenfeld, have expertise in advising individuals about whether to enter into such provisions, negotiating the contours of such provisions, and counseling employees about the enforceability of such provisions. We have been very successful in assisting individuals in negotiating with their former employers to obtain a waiver of a CNTC. When necessary, we have successfully challenged the validity and legal enforceability of certain CNTCs.
We have also assisted employers in drafting CNTCs - particularly in industries in which employers have a legitimate need to protect trade secrets from competitors. In these situations, reasonable, specifically targeted, narrowly tailored CNTCs are preferable, as they are less likely to be challenged by a departing employee and more likely to be enforced by a court.
