Shortell Law LLC Can Help You With a Non-Compete Agreement
A non-compete agreement, or a covenant not to compete, is a contract that companies ask employees to sign to protect their corporate interests. Violations can mean facing possible litigation. We help businesses and employees with Non-compete agreements.
Is This a Non-Compete or Non-Solicitation Agreement?
A traditional non-compete stops an employee from working for a competitor in a certain geographical area for a certain amount of time after leaving the company. A non-solicitation agreement prevents an employee from using customers, contracts or other employees from the company that first hired them in future business ventures. Alternately, a confidentiality agreement stops an employee from spreading information that the employer wants to keep private, such as marketing plans or trade secrets.
Be on the lookout for vague language about the geographic scope and time limits of a traditional non-compete agreement. These have been used as grounds to find that the non-compete was not enforceable.
Who is limited by the non-compete agreement?
This might seem straightforward at first. However, you should understand how the agreement limits the actions of employer and employee.
What opportunities are limited?
The answer should be specific in regards to the roles the employee can play, clients they can or cannot take, and companies where they can or cannot work in the future.
When will the non-compete clause expire?
There should be restrictions on how long the non-compete clause will be in effect. Whether it will be in place for six months of five years can make a huge difference in an employee's post-employment options. It also affects whether the agreement is enforceable at all.
Where will an employee be prohibited from working?
Some non-compete agreements set boundaries for future employment based on location. Knowing these restrictions could impact whether a person will have to actually move to find suitable employment if future prospects are restricted.
Why is there a need for this clause?
Non-compete agreements should only be necessary if they protect legitimate interests of a business.
How Shortell Law LLC can help you:
If you have already signed a non-compete agreement, are about to sign a non-compete agreement, need help drafting a non-compete agreement for an employment contract, or need representation in a lawsuit involving a non-compete agreement, you may want to talk to an attorney. Shortell Law has helped several clients scrutinize non-compete agreements for their enforceability and can advise and represent you.