Employee Protective Covenants Agreement

As an employee, it`s important to understand what an employee protective covenants agreement is and how it affects you. Essentially, this is a legal agreement that employers require employees to sign to protect their company`s interests.

What is an Employee Protective Covenant Agreement?

An employee protective covenant agreement typically includes clauses that restrict an employee from sharing confidential information, working for a competitor, or soliciting clients of the former employer for a certain period of time after leaving their position.

The purpose of these agreements is to protect the company`s intellectual property, trade secrets, and client relationships. It`s important to note that these agreements can vary widely depending on the industry, company, and role of the employee.

Types of Protective Covenants

There are three main types of protective covenants that may be included in an employee agreement:

1. Non-Disclosure Agreements (NDAs)

An NDA restricts an employee from disclosing confidential information about the company, such as trade secrets, customer lists, financial information, and other proprietary data. This clause ensures that trade secrets are kept secret, and only those who need to know will have access to this information.

2. Non-Compete Clauses

A non-compete clause prohibits an employee from working for a competitor, or starting their own business that would compete with the company, for a certain period of time after leaving their position.This clause prevents employees from taking company secrets and using them to benefit a competitor.

3. Non-Solicitation Agreements

A non-solicitation agreement is used to prevent employees from soliciting or working with clients of their former employer. This provision ensures that employees do not poach clients or customers from the company.

It`s important to note that not all states enforce non-compete clauses, and courts may strike them down if they are found to be too restrictive. However, NDAs and non-solicitation agreements are usually enforceable.

How Does an Employee Protective Covenant Agreement Affect You?

If you sign an employee protective covenant agreement, it is binding and enforceable. If you violate any of the clauses, the company may be able to take legal action against you.

Before signing any agreement, it`s important to carefully review and understand the terms. If you are unsure about any of the clauses, it`s best to consult with a lawyer to ensure that you fully understand the implications of the agreement.

Additionally, it`s important to consider these agreements before accepting a job offer. If you are concerned about the scope of a protective covenant, you may want to negotiate with the employer to modify or remove certain clauses.

In Conclusion

Employee protective covenants are designed to protect a company`s intellectual property, trade secrets, and client relationships. It`s important to thoroughly read and understand any agreement you are asked to sign, and to consult with a lawyer if necessary. By knowing your rights and obligations, you can protect yourself and your career.