Court Holds Trump Campaign Employment Contract Restrictive Covenants Unenforceable

April 06, 2021 -A recent decision by the Southern District of New York (SDNY) ruled that the non-disclosure and non-disparagement clauses in an employment contract for the Trump Campaign were unenforceable under New York law as they were too vague and too broad. In Jessica Denson v. Donald J. Trump for President, Inc., Judge Gardephe ruled that the categories of confidential information in the non-disclosure agreement were so broad that they encompassed any matter related to the campaign, and that the non-disparagement clause covered too many people and entities.

Saiber LLC’s Jennine DiSomma and Alexander C. Banzhaf break down the decision and its practical considerations. Specifically, they note that SDNY is showing less patience for broad restrictive covenants. They say “[t]his opinion signals to employers that restrictive covenants in employment contracts should be as definite as possible to increase the likelihood that they will be enforced by courts. It further signals to employers that they should be judicious when trying to enforce restrictive covenants because courts will evaluate whether employers are protecting legitimate interests or acting coercively.”

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