Employers seeking to require an existing employee to sign a restrictive covenant should consider current litigation trends surrounding what constitutes “adequate consideration.” Under the traditional rule followed by a majority of states, continued employment, standing alone, is adequate consideration for a restrictive covenant signed by an at-will employee. Several courts, however, have recently reexamined this issue, so employers must be aware of differences among the states as to whether some consideration beyond mere continued at-will employment is required.
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Recent Updates
- Health Care Non-Competes: 2025
- Wyoming Joins the List of States Banning Some Noncompete Agreements
- Arkansas Prohibits Noncompetes for Physicians
- New York State Proposes Bill to Ban Noncompetes Except for Highly Compensated Workers and in Sales of Businesses
- Texas Joins List of Legislatures Seeking to Ban Noncompete Agreements