Top 10 Steps to Make Sure a Restrictive Covenant Agreement is Enforceable

The drafting of noncompetition agreements can be a particularly difficult task because of the variations in state law, because contractual language will not necessarily be controlling on key issues such as reasonableness (often, decisions are based on the particular facts presented rather than the covenant's language), and because courts sometimes look with disfavor on noncompetition agreements and are readily willing to construe the agreement against the drafter. Artful drafting can avoid many problems and will significantly increase the chances of a noncompetition agreement being enforced.

This article, originally developed for the Pennsylvania Employment Law Institute, examines 10 steps to ensure enforceability.