Reasonable Geographic Restrictions On Prohibited Future Employment

Restrictive covenants have been used as contracts between employers and employees to protect their investment in the employee capital and their confidential information. Whether there is a reasonable geographical limitation involved in the restrictive covenant regarding prohibited future employment involves a determination of whether or not the restriction involves broad nationwide or worldwide restrictions. Due to the global reach of the Internet, the restrictions on the availability of reasonable geographical restrictions must be considered. Employers should consider the expansion of these geographical limitations in a restrictive covenant especially involving work in the Internet or in electronic commerce.


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