Restrictive Covenant and Departure Checklist: Drafting, Onboarding, Exit, and Enforcement

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Eighteen phases covering the whole life of a restrictive covenant program, from the state matrix that replaces the national template to the injunction motion three years later. The drafting phases give model language for the clauses that actually hold and flag the two carve-outs employers resist most and that most improve enforceability. A dedicated phase audits the DTSA whistleblower notice, whose absence forfeits fees and exemplary damages in every case and which applies to contractors too. The lifecycle phases cover onboarding certifications, the annual refresh, and the relocation re-papering that is the most common silent defect in a multistate program. The enforcement phases run the seventy-two hours after a resignation in order, with the preservation step that decides cases and the new-employer letter decision that creates as much risk as it resolves. One invented matter, Alderlight Systems, runs throughout.

IP and Technology > Trade Secrets | Checklist | Published 4 January 2025 - Updated 4 March 2025 | Casey Scott McKay - marksy.us

Summary. Eighteen phases covering the whole life of a restrictive covenant program, from the state matrix that replaces the national template to the injunction motion three years later. The drafting phases give model language for the clauses that actually hold and flag the two carve-outs employers resist most and that most improve enforceability. A dedicated phase audits the DTSA whistleblower notice, whose absence forfeits fees and exemplary damages in every case and which applies to contractors too. The lifecycle phases cover onboarding certifications, the annual refresh, and the relocation re-papering that is the most common silent defect in a multistate program. The enforcement phases run the seventy-two hours after a resignation in order, with the preservation step that decides cases and the new-employer letter decision that creates as much risk as it resolves. One invented matter, Alderlight Systems, runs throughout.

Keywords: covenant state matrix · compensation threshold check · advance notice period · independent consideration · garden leave election · customer nonsolicit narrowing · employee nonsolicit risk · confidentiality carve-outs · present assignment invention · prior inventions schedule · dtsa whistleblower notice audit · severability drafting · choice of law limits · relocation re-papering · access logging thresholds · exit forensics protocol · litigation hold · notice letter decision · narrow injunction · hiring-side screening


What this checklist is for

This is the working document for a covenant program and for the day an employee resigns. It does not re-teach the law. If you cannot say in one sentence why the DTSA forecloses an injunction based on what a person knows, read Where an Employee Can Go first. The reasoning behind each box, with model language, is in Drafting and Enforcing Restrictive Covenants. This document tells you what to do, in order.

Who should use it. In-house counsel maintaining employment agreements across states; outside counsel handling a departure; HR leaders who own onboarding and exit; and hiring managers' counsel on the other side of the same problem.

What you'll need before you start. The current employment, confidentiality, invention assignment, and severance templates; a roster by state, role, and compensation band; the equity and deferred compensation documents; the IT access logging capabilities; the exit process as it currently exists; and — for a live departure — the employee's device, accounts, and access history.

The worked matter. Alderlight Systems, industrial sensor software, $85 million revenue, Austin headquarters, engineering in Texas, Colorado, Washington, and California, sales in twelve states, one 2016 template applied to everyone. Ilse Marchetti, VP of Product, resigns to join a direct competitor. She lives and works in California. Before resigning she downloaded 340 files over two evenings, including the product roadmap, the pricing model, and a customer list with renewal dates.

| Phase | What you accomplish | Typical elapsed time | |---|---|---| | 1 | Build the state matrix | 4-8 weeks | | 2 | Draft the customer nonsolicitation | 1-2 weeks | | 3 | Draft the employee nonsolicitation narrowly | 3 days | | 4 | Draft garden leave as an option | 3 days | | 5 | Draft confidentiality with the carve-outs | 1 week | | 6 | Fix the invention assignment | 1 week | | 7 | Audit and add the DTSA whistleblower notice | 1-2 weeks | | 8 | Draft for the severability rule that will apply | 3 days | | 9 | Set consideration and notice mechanics | 1 week | | 10 | Choose law and forum realistically | 3 days | | 11 | Build onboarding | 2 weeks | | 12 | Build the annual refresh and relocation trigger | 2 weeks | | 13 | Build the detection layer and baseline | 4-10 weeks | | 14 | Run the seventy-two hours | 3 days | | 15 | Decide on the letters | 1 week | | 16 | Pick the claim set and the injunction to ask for | 2-4 weeks | | 17 | Run the hiring-side screen | ongoing | | 18 | Budget and review | annually |


Phase 1 — Build the state matrix


Phase 2 — Draft the customer nonsolicitation


Phase 3 — Draft the employee nonsolicitation narrowly


Phase 4 — Draft garden leave as an option


Phase 5 — Draft confidentiality with the carve-outs


Phase 6 — Fix the invention assignment


Phase 7 — Audit and add the DTSA whistleblower notice


Phase 8 — Draft for the severability rule that will apply


Phase 9 — Set consideration and notice mechanics


Phase 10 — Choose law and forum realistically


Phase 11 — Build onboarding


Phase 12 — Build the annual refresh and the relocation trigger


Phase 13 — Build the detection layer and baseline


Phase 14 — Run the seventy-two hours


Phase 15 — Decide on the letters


Phase 16 — Pick the claim set and the injunction to ask for


Phase 14A — Reading the forensic report without overreading it

The forensic report arrives with numbers, and numbers persuade. They also mislead, and the counsel who cannot distinguish signal from artifact will either bring a case that collapses or pass on one that should have been brought.

Phase 16A — Negotiating the resolution most of these should reach

Most departure matters should not become litigation. The negotiated resolution has a standard shape, and having it drafted in advance shortens every one of these.

Phase 17 — Run the hiring-side screen


Phase 18 — Budget and review

| Task | Elapsed | Cost | |---|---|---| | State matrix and template rebuild | 4-8 weeks | $25k-$70k | | Whistleblower notice audit and rollout | 1-2 weeks | $4k-$12k | | Detection layer and baseline | 4-10 weeks | $20k-$70k | | Departure forensics, per employee | 3-10 days | $8k-$35k | | Letters and negotiation | 1-4 weeks | $5k-$20k | | TRO and preliminary injunction | 2-10 weeks | $60k-$250k | | Trade secret case through discovery | 9-18 months | $300k-$1.2M | | Through trial | 18-36 months | $800k-$3M | | Defending a departing employee | varies | $75k-$400k |


Key Authorities at a Glance

| Authority | What it provides | Phase | |---|---|---| | 18 U.S.C. § 1836 | DTSA civil action; injunction limits | 16 | | 18 U.S.C. § 1839 | Reasonable measures; improper means | 11, 13 | | 18 U.S.C. § 1833(b) | Whistleblower immunity and notice | 7 | | 18 U.S.C. § 1832 | Criminal theft of trade secrets | 16 | | 18 U.S.C. § 1030 | CFAA | 16 | | Van Buren v. United States, 593 U.S. 374 (2021) | "Exceeds authorized access" narrowed | 16 | | PepsiCo, Inc. v. Redmond, 54 F.3d 1262 (7th Cir. 1995) | Inevitable disclosure | 16 | | Fed. R. Civ. P. 65 | TRO and preliminary injunction | 16 | | Cal. Bus. & Prof. Code § 16600 | Restraints void | 1 | | Cal. Bus. & Prof. Code §§ 16600.1, 16600.5 | Unlawful to include; notice; fees | 1, 15 | | Cal. Lab. Code § 925 | Choice of law and forum voidable | 10 | | Mass. Gen. Laws ch. 149, § 24L | Notice, consideration, duration, garden leave | 1, 9 | | 29 U.S.C. § 157 | Section 7 rights | 1 | | 29 U.S.C. § 158(a)(1) | Interference with Section 7 rights | 1 | | FTC non-compete rule litigation | Federal rulemaking history | 1 | | No-poach antitrust enforcement | Employer-to-employer agreements | 3 |

The five things people get wrong

Maintaining one national template. It is unenforceable in the states that matter most, and in several it is itself actionable.

Drafting the customer clause to reach every customer. A clause that broad is overbroad on its face and, in several states, is treated as a noncompete and voided.

Omitting the DTSA whistleblower notice. It forfeits fees and exemplary damages in every case, it applies to contractors, and adding it takes an afternoon.

Reimaging the laptop. The single most damaging operational mistake in departure cases, and it happens because IT is following a normal process nobody told them to suspend.

Writing to the new employer first. Send it after the forensic review, where the covenant is enforceable, or not at all.

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This document is general information about the law, not legal advice, and does not create an attorney-client relationship. Trademark and copyright outcomes turn on specific facts. Marksy is not a law firm.

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