Common Restrictive Covenants in Business Contracts | Mann & Elias
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Common Restrictive Covenants in Business Contracts

Speak to a Non-Compete Agreement Violation Attorney Los Angeles

In today’s business world, contracts have gotten more complex. This is especially true when businesses want to restrict employees from disclosing various details or working for competitors. In these instances, employees who have signed a contract with their employer will find these contracts contain restrictive agreements or restrictive covenants. Considered very important parts of contracts, these agreements are legally-binding and specifically restrict an individual from doing or saying certain things spelled out in the agreement. In some cases, the person will be compensated for their cooperation in these matters, although this is not required. However, should a person fail to live up to the agreement, they can be sued by their employer. If you need to know more about common restrictive covenants in business contracts, consult a Los Angeles workplace lawyer from Mann Elias.

When Are These Agreements Most Often Used?

In many cases, restrictive covenants are used in business contracts involving high-level executives, media personalities, or others who may possess certain trade or business secrets or knowledge that would be very valuable to a company’s competition. Because of this, the restrictive covenants used in most employment contracts are very specific and clearly spell out what can or cannot be done or said by the employee during or after they leave the company. If you have questions regarding a restrictive covenant contained in a contract, contact an employment attorney Los Angeles residents trust from Mann Elias.

Non-Compete Agreements

In many companies or business situations, a non-compete agreement is a common type of restrictive covenant. With this agreement, it is most often used in an employment situation where an employer wants to restrict an employee’s ability to leave the company and immediately go to work for a competitor. For example, if a media personality wants to leave their employer, their contract may have a non-compete agreement stating they must wait six months before being able to work for a nearby competitor. In other situations, these restrictive covenants may be used in business sales agreements, which will involve an original owner agreeing not to compete with a new owner within a certain area and similar business. In return, the seller is usually compensated for their cooperation.

Are These Agreements Enforceable?

While non-compete agreements are very common and usually included in a wide variety of employment contracts, they are often very hard to enforce from a legal standpoint. In fact, many states refuse to recognize them due to the agreement’s restriction on trade. However, other states take a different approach. Instead, if they feel there is adequate money or benefits to offset the potential loss of income, the agreement may be enforced. Due to these complexities, always work with a Mann Elias lawyer to review a non compete agreement Los Angeles residents may call into question.

Non-Solicitation Agreements

Along with non-compete agreements, non-solicitation agreements are also very common in business contracts. With these agreements, an employee who leaves a company agrees not to solicit other employees to leave the company and begin working for them. In addition to this clause, these agreements also contain sections forbidding the employee who leaves from soliciting clients or customers of the business. However, much like non-compete agreements, states have various views on these agreements when it comes to enforcement. Should questions arise, never hesitate to contact a non-compete agreement violation attorney Los Angeles companies trust to handle these matters, such as Mann Elias.

Nondisclosure Agreement

In many situations where confidentiality is of the utmost importance to a company or individual, a nondisclosure agreement will be part of a business arrangement. Also known as a confidentiality agreement, this can involve having a person agree to not talk about or steal such things as information, trade secrets, patents on inventions, or other information that is looked at as giving a company a competitive or financial advantage over its competitors. But as with other types of similar agreements, disputes are almost inevitable at some point. When you find yourself involved in such a dispute, always work with a non-compete agreement lawyer Los Angeles employees turn to for guidance, such as Mann Elias.

What Problems Can Result from these Agreements?

Needless to say that whenever these various types of agreements are signed by individuals, situations do arise later on that lead to legal disputes. Since each type of restrictive covenant is focused on preventing a person from doing or saying something related to another person or business, the underlying issue is how courts will choose to enforce such agreements. In most cases, legal experts view these cases as ones where neither party wins. Since the legal battles are usually lengthy and costly, many believe that the damage done along the way will not be able to be repaired by simply filing a lawsuit. However, that is not always the case. Depending on what has been done or said in violation of the agreement, courts may choose to take a harder look at what types of enforcement options may be available. Should the person’s negligence be clear, it is possible to work with a Los Angeles workplace lawyer to recover compensation for damages.

Various Defenses to Signing Agreements

In some situations, individuals may attempt to say they signed an agreement under duress or were not clear as to the terms contained in the agreement. However, saying this and proving this are two different things. Thus, always work with a non-compete agreement lawyer Los Angeles clients know understands these matters, such as Mann Elias. By having experienced and knowledgeable legal representation in these matters, clients can know they have a non-compete agreement violation attorney Los Angeles companies trust to handle such important matters.

Should you find yourself needing a lawyer to review a non compete agreement Los Angeles companies or individuals may have had you sign, turn to Mann Elias. By having an employment attorney Los Angeles clients know have a track record of success in these cases, you will know your case is being handled by experts in this area of law.



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