By: Nolo Law for All Use a noncompete agreement to prevent losing valuable trade secrets and employees. After losing scores of valuable employees (and trade secrets) to competitors, a growing number of employers are asking, or requiring, employees to sign noncompete agreements. By signing a noncompete agreement, an employee promises not to work for a direct competitor for a specified period of time after he leaves the company. Here’s the lowdown on whether it’s worth asking your employees to sign one, and how to create an agreement that will pass muster with a judge. How Noncompete Agreements Protect Your Business [ Read More ]
Archive for the ‘Non Compete Agreements’ Category
A non-compete clause (often NCC), or covenant not to compete (CNC), is a term used in contract law under which one party (usually an employee) agrees not to pursue a similar profession or trade in competition against another party (usually the employer). As a contract provision, a CNC is bound by traditional contract requirements including the consideration doctrine. The use of such clauses is premised on the possibility that upon their termination or resignation, an employee might begin working for a competitor or starting a business, and gain competitive advantage by abusing confidential information about their former employer’s operations or [ Read More ]
