Question

Timothy is a construction worker in one of the leading firms of a city. His employment contract includes a clause that says he cannot work as a construction worker within the city for fifteen years once he leaves the company.
This clause is:


A) Only illegal if it violates state or federal antitrust laws.

B) Illegal as a contract in restraint of trade.

C) Legal because the employer can add any constraint to the agreement.

D) Illegal as it is injurious to public service.

Answer 1

Answer:

A clause that says Timothy (A construction worker) cannot work as a construction worker within the city for fifteen years once he leaves the company  is Legal because the employer can add any constraint to the agreement.

Explanation:

The provisions of employment contracts usually include an explanation of compensation, penalties and in peculiar cases post-employment clause.

Post-employment clause usually comes with additional benefits like payment of severance.

Enforcing an employment contract varies according to state laws. For this reason, before entering into a written employment contract, clean employee has to be clear on the terms and provisions of the contract because once you append your signature to any provision stipulated by the employer in the contract, it is binding.

Post-employment restrictive covenants are only useful to the employer if they can be enforced. Continued payment of severance often provides the employer with leverage when trying to enforce restrictive covenants in an employer's contract.  

Generally, the employer and employee must be in compliance with the employment contract.