Delaware High Court Affirms That an Employer Cannot Recover Damages for Unreasonable Restrictive Covenants

On February 10, 2026, the Supreme Court of the State of Delaware affirmed a ruling that Delaware courts must examine the reasonableness and scope of restrictive covenants, even when the employer seeks only damages, and not injunctive relief. The ruling is the second in as many weeks from the Delaware high court analyzing the enforceability of restrictive covenants tied to incentive equity units.