Clawback Provisions As An Alternative to Traditional Restrictive Covenants

Employers are increasingly using clawback provisions in their employment agreements in lieu of traditional restrictive covenant breach provisions to encourage employees to abide by their restrictive covenant obligations. Kelley Drye litigation partner Robert Steiner and Employee Benefits and Executive Compensation partner Pamela Kaplan authored an article for HR Advisor that discusses the use of clawback provisions in employment agreements and compensation plans, and discusses factors that employers should consider when deciding whether or not to use clawback provisions in restrictive covenants. Although clawback provisions can be an effective enforcement tool, no approach to such clauses is without its risks and complexities. To read the full article, please click here.