Why are non-compete and non-disclosure documents important?
These documents are designed to protect proprietary information and the company itself if an employee were to leave the company to work for a competitor. Lately, NDAs and non-competes have been getting a bit of a bad reputation.
What is the definition of a non-compete agreement?
The non-compete agreement generally restricts an employee from setting up a similar business within a certain distance of the company and within a certain amount of time from the employee’s separation from the company.
Can you sign a non compete agreement with a former employer?
If your employer presents you with a non-compete agreement and you decide to sign the contract, you are promising not to compete against your employer once your employment ends. In addition to preventing you from signing an employment contract with a competitor of your former employer, non-compete clauses can prevent you from:
Can a new employee sign a non-disclosure agreement?
From a legal perspective, the promise of the job itself is sufficient consideration to support a confidentiality agreement or the non-disclosure agreement. Getting a new employee to sign either a confidentiality agreement, non-disclosure agreement, or both isn’t much trouble for the HR professional.
Why are non-compete agreements and non-disclosure agreements important?
The truth is, non-compete agreements and non-disclosure agreements are valuable tools for business owners—not because they force people to stay with you, but because they offer legal protection over the work that makes your company different and special.
Why do companies ask employees to sign non compete agreements?
However, research has shown that non-competes limit job mobility, accelerate talent flight and discourage venture-capital investments in areas that enforce them. A non-compete agreement, or a covenant not to compete, is a contract that companies ask employees to sign to protect their corporate interests.
Can a non-compete agreement be deemed unenforceable?
Poorly drafted or unreasonable agreements probably will be deemed unenforceable, but a well-crafted NDA or non-compete should not be. These agreements will respect your right to keep proprietary information protected, and respect an employee’s decision to take his or her career in a different direction.
From a legal perspective, the promise of the job itself is sufficient consideration to support a confidentiality agreement or the non-disclosure agreement. Getting a new employee to sign either a confidentiality agreement, non-disclosure agreement, or both isn’t much trouble for the HR professional.