The business world is full of contracts and agreements. One of these is a non-compete agreement, which is made between an employer and an employee. Typically, they are done to prevent the employee to use what they learned at the employer’s business to help competitors.
Anyone who is considering using a noncompete agreement must know the terms of the specific one they are thinking about. There are a lot of variations in these documents, so you must read it completely before you sign it. Having your attorney review it is also a good idea since they might see something that you miss when you read over it.
Most noncompete agreements are in force throughout the entire period of employment even when the employee isn’t on the clock. This would prevent the worker from being able to go to a competitor to work a second job. They will also extend for a predetermined period after employment ends. There are limitations to how long that period can last, but it must be a realistic amount of time that won’t prevent the employee from being able to move forward in their career.
The contract should have information about how the employee will be compensated for agreeing to the noncompete clauses. It should also have details about every aspect of limitation, including what constitutes a competitor. It should also outline penalties for failing to abide by the agreement.
A person who signs a noncompete and breaks it is considered in breach of contract. This can trigger a lengthy legal battle, so be sure to take these accusations seriously.
