Enforcing Restrictive Covenants in the COVID-19 Era
As the COVID-19 pandemic increasingly impacts employers' ability to do business, their primary worries have become managing furloughs, reductions of hours and pay, layoffs and unemployment, and leave related benefits. Hiring and its competitive impact seem like distant concerns.
A favored few, however, still need to take on new employees; and most businesses cutting personnel can still envision a day when they and their competitors will be hiring. What then will be the impact of restrictive covenants?
If laid-of f employees are not rehired by their former employers, but are of fered work by competitors either during, or in the wake of the pandemic, will such covenants be enforceable to prevent it or support a claim for damages for any provable related losses?
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