Employers often make their employees sign a non-compete agreement as part of their employment terms. In fact, using a non-compete agreement is a fairly common practice if the employee will have access to sensitive or confidential business information while working on the job.
You cannot force your employees to continue working for you, of course. But can use these agreements to prohibit a former employee from working for a rival company to safeguard your sensitive assets for a designated period of time.
In this guide, we’ll dig deeper into non-compete agreements to give you a better understanding of how they work.
What Is a Non-Compete Agreement?
Non-compete agreements are binding contracts that forbid an employee from working or becoming a part of their employer’s competitors for a defined period of time after they leave the current employer.
This can include working for a competitor in the same market or launching their own business in the same field. Employers may also bar the employee from recruiting the company’s workers to leave with them.
And they’re not just for employees–even independent contractors and consultants who terminate their relationship with companies can also be subject to non-compete clauses.
A non-compete agreement is an employer’s safety net. This allows them to avoid immediate competition after separating from an individual and protect themselves against the employee revealing company secre… Read More