What are the Elements of a Strong Non-compete Agreement?

A non-compete agreement is a contract in which an employee agrees not to compete against the employer by starting a similar business or compete against the employer in another setting. It’s important that the non-compete agreement is well-written in case the former employee brings a civil litigation suit against your company. Your goal should be to create an agreement that is enforceable meaning that if there is a civil litigation case, your agreement will hold up in court. These agreements are become more common over time, but often, employers try to write them without the advice of legal counsel. They take the risk of creating an agreement that is unenforceable. If a former employee or group of employees files a civil litigation case and the non-compete agreement is weak, the company will almost certainly lose the case and be subject to fines and other penalties.

agreementWhen you create the agreement, you should identify your goals. Are you trying to prevent people who leave the company from enticing away your clients to their new company? Perhaps your goal is to protect trade secrets from competitors and you want to prevent employees from working for a competitor in the near future. It’s important to understand the purpose of the agreement before you create it so that it’s as clear as possible.

A good non-compete agreement will protect your company from potential civil litigation cases from disgruntled former employees. It’s a good idea to consult an attorney with expertise in employment law when it comes to these agreements so you can ensure that your agreement I s reasonable and will hold up in court. Non-compete agreements are subject to certain limitations. You cannot make a non-compete agreement so comprehensive that it makes a person unable to find work in the future.

It’s important to understand the rules and regulations that apply to non-compete agreements in your state. Every state has different laws. You may have to limit your agreement to a certain geographical region. In other areas, your agreement is only valid for a certain amount of time. If your agreement is part of any civil litigation case, it will be subject to local state laws. That’s why it’s so important to talk with a knowledgeable attorney. The lawyer will be able to explain the limitations in the state or states in which your company operates.