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Jaeckle FYI - A Case for the Non-Compete Agreement

Release Date: February 18, 2010

A Case for the Non-Compete Agreement: Contractually Protecting Key Employees & Proprietary Information

A printable copy of this article can be accessed here.  
 
For more information regarding non-compete agreements and their enforcement, please contact Kevin Burke at 716.843.3854 or kburke@jaeckle.com.
 
Today's increasingly mobile workforce requires employers to think seriously about protecting confidential company information against misuse or outright theft by key employees. Contrary to popular belief, New York courts often enforce restrictive covenants designed to protect an employer from unfair competition by former employees, particularly when a well drafted agreement demonstrates necessity and is reasonable in scope. To that end, employers should consider requiring key employees to sign "non compete" agreements.
 
If your business is like most, your most valuable resources are your employees, particularly after you impart knowledge regarding your operations to them. In a competitive arena where intellectual property is your most significant differentiator, the risks associated with proprietary knowledge rise in importance. No employer wants to invest time and money training an employee only to have that individual later present the fruits of your labor to your competitor. When that happens, the damage to your company is greater than the loss of that valued employee; having a key individual defect to a competitor can result in irreparable harm to your company?s goodwill and bottom line.

Faced with this scenario, an increasing number of companies are protecting themselves against such loss by having employees sign non-compete agreements. A non-compete agreement is typically (more...)
 





This Jaeckle Article, prepared by the attorneys at Jaeckle Fleischmann & Mugel, LLP, is intended for general information purposes only and should not be considered legal advice or an opinion on specific facts. For more information on these issues, contact one of the attorneys listed above or your existing Firm contact. Prior results do not guarantee a similar outcome. The invitation to contact is not a solicitation for legal work in any jurisdiction in which the contacted attorney is not admitted to practice. Any attorney/client relationship must be confirmed in writing. 
 
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