Compare restrictive covenant laws and regulations across the United States with Fox Rothschild's 50-state National Survey on Restrictive Covenants, produced by the attorneys of our Securities Industry Group and Labor & Employment Department.

This valuable e-book is available for download here.

As many know, restrictive covenant law is in a constant state of flux and varies considerably from state to state. Moreover, restrictive covenant law changes frequently and often requires a fact-specific analysis. Over the last few years, many states have shown a trend towards increasing requirements for creating enforceable restrictive covenants through state-level legislation.

This e-book provides the important details on these changes as well as updates to requirements for drafting and entering into restrictive covenants with new employees, or reforming existing restrictive covenants to comply with new legal requirements. In particular, there have significant legislative changes that significantly alter the requirements employers must meet to draft enforceable restrictive covenants.

Similarly, the protection of intellectual property by these covenants has undergone significant changes in various states. We have included the current requirements for hiring highly skilled employees, and noted the intellectual property protections from competitors. You will also discover the protections that extend to your company’s trade secrets and confidential information as well.

These protections are critical in the securities and financial services industries. It is essential to determine the proper time limit and geographic scope of an employee’s non-compete and non-solicit following termination on a state-by-state basis. Ensuring proper protection of client lists and your rights against competing firms for poaching or raiding brokers or registered representatives, as well as proper compliance with broker protocol, is nearly tantamount to guaranteeing the survival of one’s business.

Finally, we continue to monitor national trends in this field and whether recent legislative actions will be mimicked in other states. 

For more information, please contact Joshua Horn at jhorn@foxrothschild.com, Catherine T. Barbieri at cbarbieri@foxrothschild.com and Skylar A. Sherwood ssherwood@foxrothschild.com.