Post-employment covenants in the United States: Legal framework and market behaviours

In response to fundamental market changes that are giving labour a much more central role in product market competition, employers often seek to extend their control over human capital beyond termination of the employment relationship. Although empirical studies are scarce, the use of restrictive post‐employment covenants is indeed believed to be widespread. But to what extent can employers lawfully restrict the freedom of their former employees? The author examines the criteria that courts in the United States have considered in balancing employers' legitimate economic interests against labour market efficiency and workers' post‐employment freedom and mobility.