To control the costs of executive and employee turn-over, many companies seek to impose broad covenants “not to compete” with the employer as a condition of employment. However, the post-employment enforceability and effectiveness of non-compete covenants remains an unsettled area of American. In short, covenants that are overly broad or are addressed to behavior that constitutes mere competition will not be enforced by U.S. courts. Those that address unfair competition will be enforced.
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