Do all states recognize restrictive covenants?
Author: Melanie J. Perez-Vellios, VP Group LLC
Most states recognize restrictive covenants and will enforce such covenants in various forms, including nonsolicitation agreements, nondisclosure agreements, and noncompetition agreements. However, some states prohibit enforcement of restrictive covenants or will only permit enforcement under very limited circumstances. When drafting restrictive covenants, it is important to know the specific terms and provisions required by each state an employer conducts business in order to best ensure the enforceability of such covenants.