High-Tech/Software and Communications Resource Center for HR: Restrictive Covenants

This item is part of High-Tech/Software and Communications Resource Center for HR

Employers in the high-tech/software and communications industries should institute measures to safeguard against the misappropriation of their proprietary and confidential information, client or customer lists, and anything else that provides them with a competitive edge in their industry. One way to accomplish this is to require employees to sign a restrictive covenant, i.e., a noncompete agreement, a nonsolicitation agreement, and/or a nondisclosure agreement, which also protects the employer's legitimate business interests within reasonable limits. However, employers should check the states in which they operate because some states do not enforce restrictive covenants at all, while others place restrictions on the types of information that is confidential and the geographic scope and duration of such covenants.

XpertHR provides the following resources to assist employers in protecting their confidential and proprietary information: