Business owners can be impacted by a variety of events. One of the most serious can be losing a key employee to a competitor.
Important confidential information can walk out the door when a key employee goes to work for a competitor.
The growing trend in management is for employers to ask or require their employees to sign non-compete agreements. A non-compete agreement—or a “covenant not to compete”—is a signed contract with an employee in which he or she promises to refrain from working for a direct competitor for a specified period after leaving the company.
A non-compete agreement must be reasonable to be enforced. Murphy Cordier Casale Axel PLC employment law attorneys help our clients draft agreements that are reasonable in duration, geographic area, and the type of work or business which the employee can work. When considering whether to use a non-compete agreement, we work with employers in analyzing their objectives. We’ll help you weigh the cost of training, potential damage your business, and the value of the specific employee to both you and your competitor. At Murphy Cordier Casale Axel PLC, we will help you create a non-compete agreement that works for you but does not discourage valuable employees and motivate them to leave
These agreements are also called “secrecy agreements” or “non-disclosure agreements” and are contracts typically entered by an employer and employee or consultant in which some or all the parties agree that certain types of information will be kept confidential. A confidentiality agreement is frequently used when a company or an individual has a new product or process that it seeks to have another company review before signing a licensing agreement. It is also used when one company is looking to acquire another, in handling intellectual property rights, and in other business dealings. If the party reveals the confidential information to a third-party, it may cause damages and loss of profits or market share. The injured party can then bring a breach of contract claim and ask the court for injunctive and monetary damages.
There are several scenarios where a confidentiality agreement would be appropriate for an employer or an individual. Speak with an Murphy Cordier Casale Axel PLC employment attorney to design an agreement that will serve to protect important information.