Which types of employees should sign a restrictive covenant?

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

The types of employees who should be required to sign a restrictive covenant include those who will come in contact with any confidential or competitive business information that may later be used by an employee to gain an unfair business advantage over the employer. For example, these employees include:

  • Executive staff and upper management employees who have access to a vast array of confidential business strategic information;
  • Sales and customer service personnel who have access to pricing and customer information; and
  • Production personnel who may have access to production trade secrets.

An employer should be mindful that some states place restrictions on certain professions from entering into any contract that prohibits those individuals from being employed in a specific geographic area for a specific time period after their employment is terminated.