What terms should be contained in a restrictive covenant?

Author: Melanie J. Perez-Vellios, VP Group LLC

To maximize enforceability, restrictive covenants should contain reasonable limitations as to the time period and geographic area, the legitimate business reasons supporting application of the restrictive covenant and the specific conduct being prohibited by the covenant. An employer must take care to narrowly tailor these terms to the employer's particular area of business. Overbroad restrictive covenants will likely be rendered unenforceable.