Home > Legal Updates > For Compete’s Sake! Delaware Court Declines to Enforce Sale-of-Business Restrictive Covenants

For Compete’s Sake! Delaware Court Declines to Enforce Sale-of-Business Restrictive Covenants

“Courts disfavor restrictive covenants.” This statement has become axiomatic in employment law, and it has never been truer. In the past several years, judges in various jurisdictions have cast an increasingly critical eye on agreements that purport to restrict employees’ ability to work elsewhere once they leave their jobs. It has also been clear that courts will more readily enforce restrictive covenants that a company owner signs in connection with the sale of their business. A recent decision by a Delaware court, however, seems to undermine this latter truism. Read more…