Are employers allowed to require employees to sign a restrictive covenant?

In Hawaii, employers are allowed to require their employees to sign a restrictive covenant. This is a written agreement between an employer and an employee which restricts the employee from using and disclosing confidential information, and/or competing with the employer for a period of time after leaving the job. Restrictive covenants vary in form and scope. For example, some employers may require a non-compete clause which prevents the employee from competing with the employer for a certain period of time after leaving the job. Other restrictive covenants may include non-solicitation clauses, which prevent the employee from soliciting the employer’s clients or associates. Restrictive covenants are only enforceable if they are reasonable in scope, and if they are necessary to protect the legitimate interests of the employer. Generally, they must be limited to a specific geographic area and time period. In Hawaii, employers must provide employees with a written copy of any restrictive covenant they are asked to sign, and allow them a reasonable amount of time to seek advice from a lawyer. Employees who are asked to sign a restrictive covenant should ensure that it is fair and reasonable, and if they have any concerns, they should not sign it until they have had it reviewed by a lawyer.

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Are employers allowed to require employees to sign a restrictive covenant?

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