A restrictive covenant is a contractual agreement between an employer and employee that can significantly limit the employee’s future earning potential. The terms and conditions of a restrictive covenant are binding and can impact where an employee can work, limit who they can work for, and prohibit them from contacting former clients or coworkers once they terminate their employment. Consulting with the experienced and highly skilled Philadelphia employment lawyer at Sidney L. Gold & Associates can ensure that the terms of your agreement are fair and that your legal rights are protected.
The basis of a restrictive covenant is to protect an employer from having employees leave their company with confidential information and use it to their own benefit. While this is a fair way to protect the employer’s interests, some restrictive covenants can put unfair limits on the former employee’s earning potential. Once the agreement is signed, it becomes legally binding and hard to amend.
The most common stipulations in a restrictive covenant will prohibit an employee from working for a competitor for a certain period of time following termination. These restrictions often come with specific time limits, geographic boundaries, and stipulations that prohibit the solicitation of employees or colleagues still with the employer. They can also include restrictions on business ventures that the former employee wants to pursue. In some cases, these restrictions can be so limiting that the former employee can find it hard to work within their industry or advance in their career.
Executives, physicians, and other professionals entering into an employment contract need to negotiate terms of a restrictive covenant that are fair to the employer, but also entitle them to pursue a lucrative position with another employer within a reasonable amount of time. Contracts that place restrictions on the geographic area that an employee can work could force them to relocate.
It is always wise to consult with an experienced employment lawyer before entering into any contract with restrictive covenants. A team of competent employment lawyers will be able to review your contractual obligations and restrictions before you sign. Once you officially agree to the contract, you may face costly litigation if you want to challenge any of the restrictions.
Philadelphia Employment Lawyers at The Gold Law Firm P.C. Offer Experience and Legal Counsel for Restrictive Covenants
Philadelphia employment lawyers at Sidney L. Gold & Associates provide experienced counsel to employees entering into an employment contract with restrictive covenants. We protect your legal rights and make sure that you fully understand the restrictions and obligations of the contract before you agree to the stipulations.
Call us at 215-569-1999, or contact us online to schedule a consultation today. Our offices are located in the heart of Center City Philadelphia and we serve clients throughout Pennsylvania, New Jersey, and New York.
