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FAQs surrounding non-compete agreements

by | Oct 26, 2020 | Commercial Litigation |

Many employers want to ensure the best for themselves along with their employees. They want to make sure that their practices are protected and their interests are secured for many years to come. One of the easiest ways to do that is through a non-compete agreement.

But should employers know before they adopt non-competes into their normal employment process? Luckily, we answered some of the most basic questions below.

What is a non-compete agreement?

A non-compete agreement restricts a staff member’s ability to work for competitors of your company shortly after they leave. You can protect your financial interests while keeping trade secrets safe. It’s also

However, it’s standard that not all agreements are not enforceable. Whether the restrictions are too extensive in the set period or too broad in geography, the judge may agree that an employee has the right to violate a previous agreement.

Can non-competes be required for employment?

Future employees do have the right to refuse a non-compete agreement if they desire. However, the employee runs the risk since companies have the right to rescind an offer if a potential staff member does not want to sign the agreement. It works well for most employers, but the employees could challenge it if they deem the non-compete as unreasonable.

What should be included in a non-compete agreement?

As the employer, you will want to ensure that the non-compete agreement includes protections for trade secrets, proprietary information and any company information that competitors would desire. You can ask employees to not work within a specific amount of distance from your company as well as not work with a direct competitor for a specific amount of time.

To emphasis an earlier point, it has to be reasonable. You cannot say that former employees can never work with a competitor. You need to find the right length of time to determine what is reasonable for you and any workers.

For more specific information about whether your company would benefit from a non-compete clause, consider working with an attorney to determine the best course of action for your business.