The Basics | Employer’s Rights | Employee | Elements to Prove | Recoveries | Defenses | Trade Secrets | Procedures and Injunctions | Employment Issues | Settlement Options

Is extremely difficult for a business to compete in the  market place if other businesses steal employees and  trade secrets to get an unfair advantage. The  employer has a right to prohibit certain types of  employees (such as sales people, management,  innovators, policy makers, etc.) from competing or  assisting competitors so long as the restrictive  agreement is reasonably limited in scope and time.

A Well-Drafted Agreement.
From the employer’s perspective, it is exceedingly  important that the non-compete be drafted precisely  and narrowly to meet the employer’s objective.  Otherwise, the courts will not enforce the agreement.
It also helps to give the employee incentive to obey  the non-compete, such as making severance  packages payable in stages based upon  non-competition, for example.

Recovering Damages.
It is virtually impossible to quantify the damages  sustained from unfair “competition.” For this reason,  the courts will restrain or “enjoin” an employee from  improperly competing as there may exist no adequate  remedy at law. That said, the employer can and  should include in the non-compete agreement the  right to recover attorney fees and costs of litigation.  The employer should also build into the agreement  the costs of training an employee if those can be  quantified.

Free Consultation.
We offer a free consultation to employees (defending  against enforcement) and employers trying to protect  their rights against improper competition or  dissemination of trade secrets.

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