Can an employer restrict an employee from competing after termination of employment?
An employee may be prevented from engaging in competitive activity, or taking confidential information (trade secrets) if the employee has signed a written contract containing a noncompete or nondisclosure clause. A noncompete clause or nondisclosure clause must generally be limited in time, duration, and scope and supported by independent consideration, and must be reasonable in order to be enforceable. Courts are reluctant to enforce noncompete provisions on employees unless they are narrowly defined.
