Here’s what you need to know about non-compete agreements | The Law Office of Peter C. Bronstein

Here’s what you need to know about non-compete agreements On behalf of Peter C. Bronstein of The Law Office of Peter C. Bronstein posted in Contract Disputes on Thursday, January 15, 2015. While manufactured products are still an important part of the American economy, ideas and innovations are the most valuable assets a company can own. In light of this, businesses large and small must find ways to protect trade secrets and intellectual property and to prevent employee “poaching.” If your company has taken the time, energy and money to find and hire the best and brightest employees, you should protect that investment through a non-compete agreement. In today’s post, we’ll discuss what goes into a typical non-compete agreement and what is needed to make them enforceable. In most cases, employees who sign non-compete agreements are prohibited from working for a rival company/similar business for a predetermined period of time or within a predetermined geographical radius. To put it another way, employees who leave the company may be barred from working for a rival located within a 50-mile radius of the company and/or for one year after termination of employment. For a non-compete clause to be effective, it must be enforceable in court. There are three questions courts typically consider when deciding whether an agreement is valid: Is the non-compete agreement reasonable? The terms you set in your agreement need to be balanced against the burden they will place on your employees. It may not be enforceable, for instance, to prohibit an employee from working for a competitor anywhere in California for the next 10 years. Such provisions would likely be deemed unreasonable. Does the non-compete agreement protect a legitimate business interest?In other words, agreements cannot simply be punitive to employees who leave the company. The restrictions placed on former

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