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Can we include restrictive covenants in the USA employment contract?
Can we include restrictive covenants in the USA employment contract?
A
Written by Asma Makni
Updated over a year ago

In the complex realm of employment regulations in the United States, restrictive covenants, especially non-compete agreements, have come under increased legal scrutiny. Their intended protection for employers is overshadowed by practical challenges and doubts about their enforceability across different states.

Examining the risks

The enforceability of non-compete agreements varies significantly, impacted by factors like industry norms and an employee's role. A prevalent trend emerges where US courts not only scrutinize but outright prohibit the inclusion of non-compete agreements in employment contracts, deeming them illegal and unenforceable.

These prohibitions are rooted in challenges demonstrating legitimate proprietary interests and ensuring that the sought protection aligns with US public policy. If challenged and deemed unenforceable, the consequences can ripple through workforce stability, strain client relationships, and compromise the safeguarding of trade secrets.

Omnipresent' approach

Omnipresent's deliberate choice to exclude restrictive covenants, particularly non-compete agreements, from USA employment contracts is a strategic decision. It reflects a commitment to effectively navigate the legal intricacies tied to workforce management. This approach places a premium on risk mitigation, ensuring alignment with the ever-evolving landscape of US employment regulations, and striking a balance that safeguards both Omnipresent and its clients.

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