It is no hidden secret that many employers use various restrictive covenants to protect their trade secrets, confidential information, goodwill, and customer relationships.

For example, employers often use non-compete provisions to restrict or prevent former employees from working for a competitor in the same role as the company that the employee left for a specific period of time. Employers also routinely use non-solicitation and nondisclosure provisions. Non-solicitation provisions limit an employee from soliciting the employer's customers or employees, and nondisclosure provisions protect the employer's confidential and proprietary information by prohibiting the employee from disclosing such information following the employee's separation from employment.

While restrictive covenants are fairly popular in the employment context and are used in a variety of industries, they are generally disfavored by courts and often considered as a restraint on trade. Though disfavored, restrictive covenants are enforceable in North Carolina. North Carolina courts view restrictions on an employee's post-employment work with scrutiny. As such, we have included the following best practices as reminders for employers in implementing or updating restrictive covenant agreements/provisions with employees.

The basics of restrictive covenants have not changed much in North Carolina over the years. What has changed is how and where employees do work for their employers. Organizations have...

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