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Showing posts with the label restrictive covenant

What Provisions are Typical in a Separation Agreement?

There’s been a lot in the news of late about “outrageous” provisions found in an separation agreement between an employer and an employee, like confidentiality.  Indeed, some proposed legislation would restrict the use of some provisions.   So I thought it would be helpful to go over what we  typically see in a separation agreement. First a big caveat: My description of a “typical” agreement does not mean that these provisions are in  every agreement or even that these provisions ought to be in  some agreements. Each separation or settlement has differing facts that may make certain provisions more important than others. And some employers or employees negotiate differently. In other words, there is not a one-size-fits-all to this and employers should definitely not attempt to do this without legal guidance. One more caveat, back in 2009, I provided a link to a great checklist that existed at the time about key provisio...

Budget Would Ban Non-Compete Agreements for “Homemakers, Companions and Home Health Services” Workers

Buried deep in the budget (page 417 of 567) that was passed by the state House last night is this provision: Sec. 305. (NEW) (Effective from passage) For purposes of this section “covenant not to compete” means any contract or agreement that restricts the right of an individual to provide homemaker, companion or home health services (1) in any geographic area of the state for any period of time, or (2) to a specific individual. Any covenant not to compete is against public policy and shall be void and unenforceable. It’s so buried that I had to read it a few times to make sense of it. Was it part of some other law? What is it related to? Why no public hearing on this? But all you can find is the bill analysis that essentially says the same thing: The bill prohibits contracts for provision of homemaker, companion, or home health services that restrict the right of an individual to provide such services in any geographic area of the state for any period of time or to a s...