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Good question. I doubt it: most contracts have what's called a severability clause, which says that if one part of the contract is said to be unenforceable, the rest of the contract survives as-is. So that probably means that the rest of the contract is fine.

Now, there are some other considerations here, because the real world is messy. If I were reviewing this for the employee, I would tell them that there could be other weird situations where showing good faith is important, and this could affect that. The other thing would be suggesting that if a company is putting this in there, it's a serious red flag.

If I were representing the employer, I would pull a Lionel Tribbey from the West Wing and go after someone with a cricket bat.