The foundation of the relationship between an employer and employee is the employment contract, a document that varies widely across different positions and industries. Typically, these contracts share common elements, including the identification of the parties involved, the specified role, location, duration (if applicable), responsibilities, compensation, and restrictive covenants. Restrictive covenants are designed to safeguard the employer's interests by limiting the actions of an employee after they leave the company. These can include "confidentiality clauses," "non-solicitation clauses," and "non-competition clauses" also known as "covenants not to compete." A non-compete covenant is a prevalent method aimed at preventing a former employee from engaging in job opportunities that could potentially harm the company. Although Connecticut law acknowledges that "every contract, combination, or conspiracy in restraint of any part of trade or commerce is unlawful," the courts have upheld restrictive covenants, provided they are reasonable in terms of time and geographic scope and do not offer the employer more protection than is necessary.
Restrictive covenants are clauses within a contract to which the parties agree, with the intention of legal binding. Courts have supported the enforcement of these covenants, emphasizing that allowing a party who voluntarily entered into such an agreement to evade its consequences can be seen as unfair and potentially encourages dishonesty. It is considered unjust to permit an individual to avoid fulfilling contractual duties that they willingly agreed to and benefited from. The underlying principle is one of "fairness," aimed at deterring breaches of contract. A critical element in a court's decision to enforce a restrictive covenant is the validity and enforceability of the original agreement.
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If you have any questions regarding a non-complete covenant in your employment contract, or wish to consult an attorney regarding a legal matter, please contact Joseph C. Maya and the attorneys at Maya Murphy, P.C. at (203) 221-3100 or Jmaya@mayalaw.com to arrange a free initial consultation.