A noncompete agreement protects your company

by | May 24, 2021 | Business Law

You were not totally surprised by the departure of a key employee of your company. In the past year, meetings turned into indecisive discussions, visions and ideas could not be agreed upon and your employee was less-than-forthcoming with some of his business-related activities.

You eventually learn that your employee defected to a chief competitor. This is in violation of the noncompete agreement in place. A key detail within this contract delays any employee from becoming a business competitor or working for a business competitor for a certain amount of time after the conclusion of your working relationship. Now, you must consider legal action.

Make sure it is enforceable

It is time to swiftly act, and that would include contacting an attorney skilled in business law. Any delay in doing so may affect your business. The potential outcomes: Revenues slide, customers defect and suppliers dry up. Such actions would prove damaging to your company, and recovery would be challenging.

Here are some important steps to take in such a situation:

  • Make a careful review of the noncompete agreement. How thorough is it? Does it cover nearly any situation that would surface within your company? The main aspect is that you want to ensure that this contract is enforceable.
  • Retain an experienced business law attorney. In reviewing the noncompete agreement, your legal advocate will provide crucial insight as to your options on resolving this situation. A lawsuit is among the possibilities. In considering this route, pursue it quickly. Why? Any delay may lead a court to waive your right to enforce a noncompete agreement.
  • A lawsuit will prove costly and take a great amount of time. This could lead to deep financial setbacks for your company. But understand that you will get results in a lawsuit. Not only can you sue your former employee, but you may also sue the company that he started or retained him.

You had a noncompete agreement in place just for this reason. Many companies rely on them, not expecting to enforce them. But, in moments like these with the defection of a key employee to a rival, this contract provides crucial protection.