Guidance For Drafting And Enforcing Noncompete Agreements
It is standard practice in many industries for companies to use noncompete agreements to protect their company secrets and intellectual property when employees depart. A noncompete agreement must be carefully drafted and strongly enforced to be valid. At Hantzes & Associates, we assist business owners, legal counsel and executives with all aspects of noncompete agreements.
A noncompete agreement is a common part of an employment contract between an employer and employee or new hire in which the employee agrees not to work for a competitor for a reasonable period of time. Usually, only employees with access to company secrets are asked to sign a noncompete. As with any contract, there must be consideration in exchange for the employee agreeing to restrict their career choices. Most of the time, the consideration is the job offer. If the employee already works for the employer, the consideration could be a promotion or raise.