The executive's rights under the benefit plans of the company shall be determined under the provisions of those plans. However, post-employment restrictions must be carefully and narrowly drafted to pass muster. Although the California courts will look warily at a covenant not to compete, the courts will not hesitate to restrict unfair competition by a former employee. An unfair competition clause must only proscribe conduct amounting to unfair competition and should be limited in duration, geographic territory and job description. An overreaching unfair competition clause could jeopardize the validity of the clause under court scrutiny or jeopardize the employer's claim of unfair competition.
Many employment contracts provide for arbitration of disputes.
Opting out of the court system in favor of arbitration has its benefits and burdens which must be carefully considered. The common refrain is that arbitration furnishes a speedier and more private means of dispute resolution than a lawsuit. A well conceived employment contract can provide considerable peace of mind for both the employer and employee. It enables both parties to concentrate on the work at hand instead of other concerns, such as losing a skilled employee at any time, or losing a job at the will of the employer.