Question 1

Are restrictive covenants enforceable?

Accepted Answer

It depends heavily on where you are. California bans most non-compete covenants entirely. Texas, Florida, and most other states enforce them if they're reasonable in scope, duration, and geography. Courts look at whether the restrictions are narrow enough to protect a legitimate business interest without destroying your ability to earn a living.

Question 2

How long can a covenant last?

Accepted Answer

Most enforceable non-compete covenants last 1–2 years. Anything beyond 3 years gets heavy scrutiny from courts. Non-solicitation covenants can sometimes run longer because they're less restrictive. The trend in the U.S. is toward shorter durations — the FTC even proposed banning non-competes entirely in 2024.

Question 3

What happens if you violate a covenant?

Accepted Answer

The other party can sue for damages and seek an injunction — a court order forcing you to stop the violating activity. In non-compete cases, that could mean being forced to leave your new job. Some covenants include liquidated damages provisions, so you'd owe a predetermined penalty amount.

Question 4

Can you negotiate a covenant before signing?

Accepted Answer

Yes, and you should. Push for a shorter duration, smaller geographic scope, and a narrower definition of 'competing.' Also negotiate a 'garden leave' clause — where the employer pays you during the non-compete period. If they won't pay you not to work, the covenant is much weaker in court.

Question 5

What's the difference between a covenant and a condition?

Accepted Answer

A covenant is a promise — you must do X or not do Y. A condition is a trigger — if X happens, then Y follows. Breaking a covenant is a breach. Failing to meet a condition doesn't create liability; it just means the condition-dependent obligation doesn't kick in.

Covenant

Definition

In Practice

Common in these contract types

Frequently asked questions about covenant

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