Delaware Supreme Court Says Employer Can Enforce Restrictive Covenants After Revoking Ex-Employee’s Equity

On February 3, 2026, the Supreme Court of the State of Delaware ruled that restrictive covenants are enforceable if there is sufficient consideration at the time of contract formation, regardless of whether that consideration still exists at the time of enforcement of the covenants. The ruling revived an employer’s claims to enforce an agreement containing multiple restrictive covenants against a former employee even though the employee was forced to forfeit equity units received for agreeing to the covenants in the first place.