Businesses, as well as key employees of a business, need to understand the whats and hows of non-compete agreements. In today’s very competitive business climate, it is imperative that well drafted non-competes be tailored to fit each particular business operation in order for it to remain competitive. Attorney Godfrey has assisted businesses, small and large, and key employees and executives in drafting and/or negotiating non-compete agreements targeted to protect competitive advantages.
Non-compete agreements generally cover four (4) different “restrictive covenants”:
- Non-compete covenant. In its simplest terms, an agreement by the key employee not to take a job dong the same kind of tasks with a competitor;
- Non-disclosure covenant. An agreement by a key employee not to disclose trade secrets or other confidential information to third parties;
- Non-solicitation of Customers covenant. An agreement not to solicit the existing or targeted customers of the business; and
- Non-solicitation of Employees covenant. An agreement not to hire away other employees of a company to work for a competitor.
Each of these covenants is intended to address a specific area of the relationship between the business and its key employees. Both the business and the employee have interests to be protected. The business is interested in protecting its continued successful operations, while the key employee is interested in being able to continue to find gainful employment in his or her field of expertise.
Understanding the essentials of this interaction of interests, Attorney Godfrey is experienced in addressing the interplay of well-defined restrictions that provide ample protections for both parties. Too much leeway in one direction or the other could lead to unenforceable or ineffectual protections.
No business or key employee should take lightly the terms of a non-compete agreement. Non-compete agreements are generally enforced by the courts in most circumstances. The business needs to take advantage of the competitive edge such agreements can provide, and key employees need to take steps to protect their legitimate interests. Call on Attorney Godfrey to assist in drafting or negotiating your agreement.