Restrictive covenants used in employment contracts often include compensation details for the party that agrees to avoid engaging in specified actions. Both employment and independent contractor contracts can leverage restrictive covenants to protect sensitive information, technology, or other important assets.
Restrictive covenants are clauses used in legal agreements that prohibit certain actions by one or both parties. A restrictive covenant is the opposite of a positive covenant, which is a clause that requires one or both parties of an agreement or contract to take specified actions.