Question

do you believe covenants not to compete, such as the one in BDO Seidman, are ethical?

Answer 1

In order for a restrictive convent to be specifically enforceable, it must be reasonable as to how long it is effective and the geographic limitations it places upon a signee and must be necessary to protect an employer’s legitimate interests in protecting from unfair competition and must not be unseasonably burdensome to the employee who signs it. The restrictive covenant must be protecting legitimate business interests of the employer in terms of preventing unfair competition. Unfair competition can be characterized by a former employee using business relationships he developed while employed with the employer and using that to procure clients of that previous employer. Under the blue pencil doctrine, courts may uphold parts of a restrictive covenant that do prevent unfair competition and strike parts that are unreasonable. The convent at hand prevents the defendant was working with any client of the plaintiffs and is not limited to solely those clients who he worked with. The geographic area extends to the entire area of Buffalo, New York. Thus, the agreement is unreasonable and unenforceable