Like toothpaste squeezed from the tube, corporate goodwill, trade secrets and confidential business information are virtually impossible to recover once stolen by a former employee. To secure your business’s prized assets, restrictive covenants limiting the post-termination activities of former employees are an effective tool in the corporate arsenal.
These agreements are generally enforceable in the United States, provided they are supported by adequate consideration, narrowly drafted to protect a legitimate business interest and reasonable in geographic scope and duration. There are, however, substantial differences in Latin American approaches to comparable restraints.
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