Non-compete agreements or clauses are a frequent addition to new employment
contracts. Essentially, these agreements will prevent one of your employees
from directly competing with your business, or working for a competitor,
for a specified length of time after the employment is terminated by either
party. However, because these agreements impact an employee’s right
to employment, they are often rejected by the courts if they are not carefully prepared.
What Are Some Examples of Non-Compete Restrictions?
There are generally two restrictions put forth in a non-compete agreement.
The first is essentially a confidentiality agreement, which restricts
your employees from sharing any confidential information or trade secrets
while employed and for a specified period of time after the employment.
The second component is the portion that actually restricts the employee’s
ability to compete directly with your business. This will limit their
right to own, manage, consult with, operate, or even work for a company
that is a direct competitor of your business. This will also last for
a specified length of time after the employment ends, but smartly constructed
agreements will also set a specific geographic restriction. For example,
an employee who leaves your straw manufacturing business can work for
a competitive brand, but only if it is more than 50 miles away from your
Make Sure Your Agreement Is Valid. Call Our Firm.
At Rifkind Patrick LLC, we have more than 40 years of collective experience
in drafting rock-solid employment contracts, including non-compete clauses
and agreements. Our practice handles a wide variety of business law matters,
giving us unique insight into the importance of a properly constructed
contract. If you’re trying to defend against a lawsuit related to
non-compete agreements, trust our skilled business litigators to protect