Employment Restrictive Covenant Agreement review
Employment-side non-compete / non-solicit covenant. Subject to FTC NCR § 910 and state non-compete law.
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What it checks
Worker non-compete — state-law enforceability scrutiny
Worker non-competes turn on state law; the FTC's 2024 rule that would have banned most of them (16 C.F.R. Part 910) was vacated and never took effect.
Warning · EMP-024
Non-compete duration stated
Where permitted, non-compete duration must be stated.
Critical · EMP-025
Non-solicit of customers and employees
Employment RC should include customer / employee non-solicits.
Critical · EMP-026
Geographic scope tied to actual market
Geographic scope should be reasonable and tied to where the employee worked.
Warning · EMP-027
Consideration for restrictive covenants
Restrictive covenants must be supported by consideration; some states require independent consideration mid-employment (e.g., MA, WA).
Warning · EMP-028
Garden-leave option (MA / WA where required)
Massachusetts requires garden leave or other mutually agreed consideration for post-employment non-competes; Washington requires continued base pay when enforcing against a laid-off employee.
Warning · EMP-029
Blue-pencil / reformation clause
Restrictive-covenant agreement should empower courts to reform overbroad terms.
Warning · EMP-030
Equitable relief and injunction
Restrictive covenants should authorize injunctive relief.
Critical · EMP-031
Every run also applies 110 general checks that belong to any agreement: structure, parties and signatures, defined terms, cross-references, dates, amounts, and one-sided terms.
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