Many businesses require their new employees to sign a non-compete agreement to protect the company’s proprietary interests. But, the law generally dictates that the agreement cannot restrict an employee’s ability to find work elsewhere or to start his or her own business. The valid reasons for employers to implement these agreements are:
- Protecting trade secrets
- Selling or purchasing a business or business assets
- Recovering training/educational expenses of an employee who worked fewer than two years
- Executives, officers, managers, and their staff members
To determine whether or not a non-compete agreement is enforceable, a court will determine whether it is reasonable. Some of the factors considered include whether the restriction on employment is limited to:
- A reasonable amount of time
- A reasonable geographic location
- A reasonable scope of business activities
- A non-disclosure agreement is also known as a confidentiality agreement. This is an agreement that prohibits a person from sharing any information that a business deems confidential.
A non-disclosure agreement can prevent an employee from revealing confidential information about a business during their employment and/or after the employment relationship has terminated.
The Olson Law Firm can assist employees and businesses whenever they have questions about these complicated types of agreements. We take the time to listen to your story and, if necessary, review your agreement in order to help you navigate the many legal issues raised by a non-compete and non-disclosure agreement.