More and more businesses are being created every day, and with the United States building up the notion of competition, business owners must be careful about who they hire, and what those employees do after they leave the business. Because of this concern, employers sometimes include non-compete agreements in employment contracts to prevent them from stealing ideas and customers.
Indefinite contracts cannot be created without a legitimate reason for their existence, and the agreement must also not inhibit the employee’s ability to obtain employment upon termination. In most cases, a non-disclosure agreement only goes into effect after termination, which is a major area of concern when it comes to legalities.
First, a non-defining agreement should protect the employer from a valid concern. For example, if you work as a sales representative for an electric utility company, they may ask you to sign a non-compete agreement that prohibits you from sharing privileged deals with other utility companies in the future. This may include sales pitches, contract forms and other items sold. A non-certainty agreement could also require that the employee not work for another benefit of the company for three-to-six months after termination.
Second, the non-certain consent must be properly considered. In most cases, the employer must offer additional compensation for the contract, such as more money per hour, discounts on benefits or a promotion. The type of improvement increases after use; if asked to sign an inappropriate agreement after use, then the amendment must be greater than if signed before use.
And third, the non-certainty agreement must be reasonable in scope, geography and time. For example, I was once asked to sign a non-compete agreement, which stated that I would not be employed by the industry for twelve months following termination. But this is not reasonable. Another example would be if the non-competition clause stated that you cannot work in that industry in the state of Oklahoma. This prevents the worker from seeking employment unless he moves out of state, which is also unreasonable.
In order to be in a certain legal agreement, I mean to show that it is a “legal business”. This means that the employer must share certain information with the employee, and the employee is not allowed to share that information with the competition. In order for this to be legal, the employer can prove that the information it shares with the employee is a legitimate benefit conflict.
Generally, non-competition agreements are included in the employment contract. It will be a clause that many employees will ignore, so they don’t understand signing something. If the agreement prevents the employee from being used in the termination of the search, the agreement of the agreement should be evaluated, and it should be wise to sign it or not.
If an employee is terminated and feels the non-compete agreement is unfair, he or she can take the matter to court. In fact, courts generally favor the employee over the employer because non-compete agreements are vague and often overbroad. Since the laws on non-compete agreements are vague, courts take these cases one at a time and evaluate each case individually.
If you are concerned about signing a non-certificate agreement, it is best to have an employee’s rights attorney review the document before you agree. Ask about the validity of the agreement and whether or not you are being fairly compensated for the promise. Sometimes the employer wants to negotiate this matter, while others keep it as a universal clause in the contract. Whatever the case, employees should protect their rights in non-disclosure agreements and sign agreements about which they have questions or concerns.
Also, the employer should consult with an attorney when writing the non-specific agreement to determine the scope of the reasonable agreement. An attorney can save you time and money with employers who are competing for contracts. You want to protect your rights and your business, but it’s also important to treat all employees fairly.
