Client Alerts

The Impact of Social Networks on Restrictive Covenants: Why Rapid Change Should Meet Rapid Improvement

February 17, 2012


Over the past 10 years, with the advancements in technology and the rapid spread of online networking among professionals, the effectiveness of traditional restrictive covenants such as confidentiality agreements, noncompetition agreements, and nonsolicitation agreements has been called into question.1 When employers have leverage in the labor market, generally makes business sense for them to act aggressively to protect their confidential information as well as personal contact with clients after key employees terminate their employment. Of course, employees prefer to avoid restrictive covenants because they limit employees ability to move on and conduct new business after their termination.

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