Businesses invest time and money to develop their business procedures, relationships and information, such as marketing strategies, customer information, pricing strategies, and future business development initiatives. These models and information provide businesses a competitive edge, and employers have a strong incentive to guard such assets and protect their businesses by all means reasonably necessary. Employers can typically accomplish this through using a combination of nondisclosure agreements, nonsolicitation agreements, and other restrictive covenants.
Though permitted, restrictive covenants can vary in their enforceability, if at all. Courts recognize that while protecting confidential information or other protectable business interests is important, an employee’s right to work and make a living is just as important, if not more. The courts in Pennsylvania and New Jersey will not enforce agreements they find to be unreasonable. So, how does a business draft enforceable restrictive covenants?
