Reasonable Restraint Rule Law and Legal Definition

Reasonable restraint rule provides that:

a. the covenant should be limited in operation either as to time or place;

b. the covenant should be based on some good consideration; and

c. the covenant should afford a reasonable protection for and not impose an unreasonable burden on the employer, the employee or the public. [Hoiness-Labar Ins. v. Alumbaugh, 1994 Mont. Dist. LEXIS 648 (Mont. Dist. Ct. 1994)].