Managing Restrictive Covenants for a Multi-National Workforce: A Primer for U.S. In-House Counsel


Back in July 2011, we wrote in our Noncompete News blog about the challenges posed for in-house attorneys who are tasked with drafting and enforcing restrictive covenants when a company does business in many different states throughout the country. See Non-Competes in a Multi-State Environment. In recent years, however, we are hearing from more and more companies facing an analogous challenge that is even more daunting: managing non-compete and trade secret issues on a multi-national basis. This isn’t just a problem for Fortune 500 companies. A recent study by Deloitte Consulting found that 52% of U.S.-based middle market companies surveyed derive some of their revenues from abroad and that 48% already have employees outside the U.S. Looking into the future, Deloitte’s survey also found that within three years 65% of middle market companies anticipate they will be operating abroad; 10% expect overseas revenues to outstrip domestic revenues within three years; and nearly 30% report they will have at least a quarter of their employees based abroad. See Deloitte’s Mid-Market Perspectives: 2011 Report on America’s Economic Engine. More and more middle market companies are grappling with the need to manage a global workforce, and those that aren’t grappling with it yet likely will need to do so in the near future.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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