Rich Michaelson Magaliff Moser, LLP Rich Michaelson Magaliff Moser, LLP
Speak with one of our attorneys today.
TF 877.373.6811
|
NY 646.453.7851
Main Navigation
Real World Solutions To Real World Challenges
Best Lawyers | Best Law Firms | U.S.News & World Report | 2016 Best Lawyers | Best Law Firms | U.S.News & World Report | 2017

R3M has been voted a Best Law Firm by US News & World Report and Best Lawyers

Get Answers

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The importance and utility of non-competition agreements

When you think about it, employment is actually a very complex deal that a company and an individual agree to. On the surface, it seems so simple: the company needs a position filled and a person wants a job. How simple! But employee contracts are filled with important legal information and legitimate protections for both sides to ensure that the deal is worthwhile for the company and the employee.

One critical piece to the employment formula is the non-competition agreement. Most employee agreements have an "NCA" in them. These agreements protect the company from an employee leaving the company to join a competitor (or some other company) and spilling the secrets of the company the employee formerly worked for. Those trade secrets and business processes that the first company used are very valuable, thus the NCA is a way of protecting that information.

Now, since non-competition agreements can, in theory, limit a person's ability to find new work, it is important for the company using the NCA to ensure the document is proper in scope and that it is compliant with the law -- otherwise, a judge may not approve of the NCA and strike it down if litigation were to commence.

To ensure "scope," make sure that your document doesn't hold the employer to the NCA for too long and that the interest your are protecting isn't too broad. Your contract also shouldn't limit the former employee's ability to work in certain geographical locations.

Source: FindLaw, "Non-Competition Agreements: Overview," Accessed May 31, 2016

No Comments

Leave a comment
Comment Information