The Increased Importance of Non–Compete Agreements for Accounting Firms

Michael C. Lasky, and David S. Greenberg

It has been said that it is wise to keep your friends close and your enemies closer. In these challenging economic times, accounting firms are increasingly following this maxim when it comes to postemployment restrictions for departing professionals. In fact, growing numbers of accounting firms are making certain that they have the right form of non-compete and protective covenant agreements in place with their employees, managers, and partners in order to ensure that accountants cannot leave the firm and take their books of business and client relations to a competitor. More and more well-known New York accounting firms are going to court to enforce their rights under such agreements when once-loyal accountants leave the firm and then seek to service former clients or hire employees from their former firm.