NY Small Business Employment Law Issues -- Restrictive Covenants Do you screen for restrictive covenants when hiring? Failure to do so might cost you. Effective screening during the hiring process can save you a lot of trouble in the future. Frequently, new-hires are subject to restrictive covenants that you do not know about. This can expose you to claims even if you were not aware that the employee was subject to a restrictive covenant.
These days, most companies look at departing employees’ computer logs when they receive a notice of departure. By doing this, they can easily discern not only if the employee has breached his or her restrictive covenants, but also if such employee intends to do so.
You need to be proactive and organized in uncovering any restrictions that new-hires are subject to. Do not just take a candidate’s word. Inquire about all possible pre-existing non-disclosure agreement, intellectual property agreements, non-competes and non-solicits. Contact an employment attorney to learn more about what you can do to safeguard your start-up against employment claims.