Covenants not to compete are not inherently bad. It’s just the laws of some states that make them so.
In other words, it’s an issue of policy.
The purpose of covenants not to compete is, of course, to broadly protect your group’s business.
But even if your group practices in a state that will not enforce covenants not to compete, there are other ways of achieving a large degree of protection: by layering various protections, you may be able to reach much of what a covenant not to compete would provide.
But even covenants not to compete are not airtight: Be wary of creating over-broad and long running covenants that a court would not likely enforce.
Comment or contact me if you’d like to discuss this post.
Mark F. Weiss