Preparing effective non-competition agreements is possible when an employee has access to confidential marketing and customer information. The agreement must be limited in time and geographic area and must not unfairly restrict competition, allowing protection of an employer’s competitive business interests.
A Judge enforced a non-compete agreement when an employee was prohibited from contacting customers for 12 months and there was no geographic boundary at all. Mid-Michigan Medical Billing Service, Inc. v Williams
Here a Judge struck down a non-competition agreement when we demonstrated, at trial, that the employee took no confidential information and had a right to make a living selling insurance
How long can it be protected? As long as it is not in the public domain - a long, long time. Courts will enforce well-written and fair agreements to protect employers against the theft of confidential information.
When to sign it? Technological advances have now provided employees greater access to sensitive data, and easier means to copy it. Require your employees to sign Confidentiality and Non-Disclosure Agreement on their first day of employment.
Contact us for a consultation and protect your business