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Intellectual Property Law

: The Trade Secrets Vault

Enforcing Restrictive Covenants in Times of Layoffs

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By Jonathan Stoler In these challenging economic times, layoffs and corporate reorganizations are becoming more commonplace. Employers in the midst of such job actions are also being forced to address an array of employment laws and business issues relating to these matters. Central among their concerns is the ability to continue their business operations with minimal disruption and to protect their business interests in the face of large-scale terminations. Indeed, how to maintain protection over confidential business information and to ensure a company's continued competitive edge following layoff situations is the question of the day. One answer is through the enforcement of non-competition or other types of restrictive covenants that may have been in place prior to a layoff or similar job action. As the following suggests, however, an employer's ability to enforce restrictive covenants against employees subject to layoffs may be more difficult than it appears.

Full post as published by The Trade Secrets Vault on August 21, 2008 (boomark / email).

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