Protect Your Business from Competition
One of the greatest fears a small business owner may face is the loss of a valuable employee. If that employee leaves to start their own business or to work for a competitor and takes your customers, the result could be disastrous for your bottom line. It may be possible to protect your business using a non-competition agreement. Call and speak with your LegalShield provider law firm to learn more.
A non-compete clause or covenant not to compete is an agreement between and you and your employee, which states that if the employee leaves your business he or she may not enter into or start a competing business. A well written non-compete clause will legally protect your trade secrets, client information, marketing strategies, and other information vital to your business’s success. It is important that your non-compete clause be narrowly tailored to protect your business interest. If the agreement would hinder the employee’s ability to obtain any reasonable employment after leaving your business, it may not be enforceable by the court.
Before you sign or ask an employee to sign a non-competition agreement, it is essential that you speak with an attorney. Laws regarding non-competition agreements vary by state. Some states prohibit non-compete almost entirely, while others strictly limit them to certain businesses or circumstances. Your LegalShield provider law firm can advise you of the laws that govern your state and help review your agreement. Call today to learn more.