Which of the following is a form of restrictive covenant that restricts a former employee from working for competitors?

• A. Noncompete clauses
• B. Non-disclosure agreements
• C. Non-solicitation agreements
• D. Golden parachutes

Answer: (A)

Restrictive covenants that limit where a former employee can work for competitors are noncompete clauses. These agreements aim to keep a departing employee from taking a similar role with a competing company for a defined period and within a specific area, protecting the employer’s customer relationships, trade secrets, and competitive position.

Non-disclosure agreements prevent sharing confidential information but don’t bar employment with competitors. Non-solicitation agreements restrict soliciting the company’s clients or employees, rather than prohibiting work for competitors in general. Golden parachutes are severance packages, not restraints on post-employment employment.