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alone, the number of trade secret theft cases overseen by the unit increased by morethan 60%. 24B. Restrictive CovenantsEmployment contracts, policy manuals, and confidentiality agreements are often (withincreasing frequency) drafted by employers to contain post-employment “restrictivecovenants”—provisions which are designed to limit an employee’s ability to competewith the employer after the employment relationship ends. These covenants are helpfulto employers to protect their investment in employees and safeguard trade secrets andconfidential information.However, because they (by their very nature) inhibitcompetition in the employment marketplace, they are often disfavored by the courts.This section identifies the common types of restrictive covenants used by employers,and validity and enforceability issues regarding such provisions.1. Common Types of Restrictive Covenants.Restrictive covenants most often appear in the employment context and typicallyattempt to control an employee’s actions post-employment. Generally, there are threetypes of restrictive covenants that may apply to an employment relationship: (a) acovenant not to compete with the employer post-departure; (b) a covenant not to solicitor deal with the employer’s customers or employees; and (c) a covenant not to disclosean employer’s confidential or trade secret information post-departure.24 Randall C. Coleman, Statement Before Senate Judicial Committee, Subcomittee on Crime andTerrorism, Washington D.C., May 13, 2014 (available at http://www.fbi.gov/news/testimony/combatingeconomic-espionage-and-trade-secret-theft,last visited Jan. 13, 2015).3082723.3

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