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Protecting your business through non-compete agreements

If you own a small business in Nevada, you know how important it is to differentiate yourself from the competition and protect certain information about your business. One of the ways that you can do this is by drafting non-compete agreements that are purposeful and enforceable.

When you have your employees sign non-compete agreements, you are protecting the interests of your business. These legal contracts can ensure that your private business-related information stays where it belongs. You worked hard to build your business, and it may be necessary to take certain legal steps in order to shield your company from complications in the future, as well as protect your competitive advantages.

What should you know about non-compete agreements?

Generally, the intent of a non-compete agreement is to protect trade secrets. However, these agreements cannot impede a former employee's right to earn a living later in the future. Sometimes, a non-compete agreement can come under scrutiny, and it is possible that a dispute over this type of contract could end up in court.

When drafting non-compete agreements for your employees, it is beneficial to take the appropriate steps to ensure they are legally enforceable and will stand up in court. In order to have a strong non-compete agreement, you would be wise to take the following steps:

  • Make sure that all parties have ample time to review contracts before signing.
  • Include terms that protect a genuine business interest of your company.
  • Have terms that are reasonable and fair regarding the limitations it places on the employee.

One of the most important factors of any non-compete agreement is the inclusion of terms that are reasonable. Agreements that are overly broad in scope could be unfair to an employee who seeks employment somewhere else in the future.

Avoiding and handling disputes

Despite the fact that you have your employees sign a non-compete agreement, it is still possible that there could be challenges or violations of your contract. If you believe that an employee is violating the terms of your non-compete and your business interests are at stake, you have no time to lose in seeking a legal resolution to your concerns as soon as possible.

You have the right to work to keep your proprietary information and trade secrets exactly where they belong. Don't let your competitive advantage leave with your employees. Instead, take steps to shield your business and appropriately deal with any disputes that arise involving violations of non-compete agreements.

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Law Offices of P. Sterling Kerr, P.C.
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Henderson, NV 89074

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