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Is your noncompete agreement really enforceable?

On Behalf of | Sep 27, 2019 | Firm News

As a Nevada business owner, you understand there is nothing more important than securing and protecting the interests of your company. One way that you can do this is by outlining and clarifying the relationship you have with your employees through strong employment contracts. These agreements outline expectations and provide protection for both parties.

One important aspect of many employment contracts is a noncompete agreement. These agreements allow you to shield certain parts of your company information, such as client lists, special processes and other proprietary information, and keep it where it belongs. If you have certain information you want to keep safe and secure, it is worth considering the benefits of these types of agreements or reviewing yours to ensure they are enforceable.

Do you need this type of agreement?

Not every company will need these types of agreements. However, your company may benefit from a noncompete if you have specific proprietary information that you want to keep safe. These agreements outline what an employee can and cannot do if he or she ever leaves your employ, ensuring that your closely held information does not somehow make it to your competition or become publicly known.

Every type of employment agreement is different depending on what the company needs and its specific goals. It is in your interests to make sure that your agreement is completely enforceable in order to prevent problems in case an employee disputes the contract down the road. Some things you will want to consider for your agreements are:

  • Clearly establish that there are genuine business reasons for having an employee sign a noncompete agreement.
  • Include benefits in the agreement that also protect the needs and interests of the employee.
  • Keep the terms, scope and length of the contract reasonable or else a judge may determine that it is not enforceable.

As with all types of legal agreements, it can be helpful to speak with an experienced attorney as you draft your employment contract. There is a lot at stake with your agreement, and it is worthwhile to ensure that you include the right terms and end up with a final contract that will stand up to potential scrutiny in the future.

If you are unsure whether you may need this type of contract or you have questions about your employee agreements, you may want to first start with an assessment of your case and explanation of how you can protect your company.

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