Tag Archives: non-compete agreement

Creating a Non-Compete Agreement to Protect Trade Secrets

After losing too many valuable employees with intimate knowledge of their business to competitors, employers started creating and enforcing what are called “non-compete agreements.” These non-compete agreements, sometimes called restrictive covenants, essentially ban former employees from working under a direct competitor for a set length of time following their departure. How Can a Non-Compete Clause Protect Your Company? There are a variety of benefits to having a non-compete agreement with your employees. The first and possibly most beneficial of which being that it dissuades current employees from leaving the business. With a non-compete clause, an employee’s options after leaving your business would be restricted, which is a pretty good reason to stay. Non-compete agreements also protect confidential information about your business, known as trade secrets. Trade secrets typically involve information that is not general knowledge and gives your business a competitive advantage. A former employee with this information would likely…
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