If yours is one of the many companies considering new employment incentives, enhanced benefits, and retention bonuses, you should also consider taking another look at your non-compete covenants at the same time. They might already be outdated and unenforceable.
The most recent jobs report confirmed what those of us in the industry already know: this is the tightest market for talent and the most competitive employment market in years, if not decades.[1] Both employee resignation and employer hiring are reaching near-record highs while the layoff rate approaches a near-record low.[2]
In this climate, smart companies are working hard to retain their talent, which creates often-overlooked opportunities. As companies offer employees new incentives to increase retention, those same incentives provide opportunities to seek enhanced covenants in return. In a competitive labor market, these agreements become all the more important—no one wants an employee using knowledge of their company as a sales pitch to a prospective employer (who just might also be their biggest competitor).
1. Your non-compete from just one year ago may no longer be enforceable.
The law in many states has changed and continues to change in ways that may already have rendered your current non-competes obsolete. Within just the past year, statutory changes in Illinois, Nevada, and Oregon have significantly limited the enforceability of restrictive covenants for...
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