What is an example of a non-compete agreement?
What is an example of a non-compete agreement?
Example 1: Noncompete agreement. Nondisclosure and Noncompetition. (a) At all times while this agreement is in force and after its expiration or termination, [employee name] agrees to refrain from disclosing [company name]’s customer lists, trade secrets, or other confidential material.
What is a typical non-compete clause?
A traditional non-compete stops an employee from working for a competitor in a certain geographical area for a certain amount of time after leaving the company. A non-solicitation agreement prevents an employee from poaching customers, contracts or other employees from the company that first hired them.
How do you draft a non-compete clause?
Drafting an Enforceable Noncompete Agreement
- What is a noncompete agreement?
- Keep the group small.
- Keep the restrictions reasonable and narrow.
- Provide consideration for the agreement.
- Get it in writing.
- Prepare multiple versions if necessary.
- Concede choice of law/forum.
- Provisions to include.
What are acceptable terms for non-compete agreements?
Important Terms to Include in Non-Compete Agreements
- Time and Geographic Scope.
- Tolling of Non-Compete Period.
- Protectable Interests, Injunctive Relief, Attorneys’ Fees, and Costs.
- Choice of Law and “Forum” Selection.
- Assignment.
- Material Job Changes.
- Right to Inform New Employer.
How is a non-compete worded?
The Executive agrees not to directly or indirectly compete with the business of the Company and its successors and assigns during the Employment Period and for a period of one year following the Executive’s termination of employment.
Are non-compete agreements legal?
A non-compete clause is not legally enforceable unless it is reasonable. Whether or not it is reasonable should, under current law, be decided by reference to the circumstances at the time it was entered into.
How effective are non-compete agreements?
Non-compete agreements often prevent employees from working in the same industry as their former companies. If they have spent their entire careers developing their expertise and skills in that particular industry, then such employees will be effectively foreclosed from finding any comparable work on similar pay.
