Share
A non-compete agreement is essentially a document that restricts an employee from competing with an employer after the employment relationship ends.
According to Lauren Iannaccone, partner at Connell Foley LLP, “Non-compete provisions are used in employment agreements to prevent an employee from joining in competitive practices or to start a competitive practice within a certain geographic region for a specified period of time.” She explains that employers use non-compete clauses to protect their investment in people. “If (an employer) invests funds into an employee or helps develop that employee, a non-compete agreement helps to ensure that the employee cannot go and join a competitor right across the street.”
Non-competes are just one type of restrictive covenant. Depending on the employee and the nature of the business’s concern, it may be more appropriate (and effective) to employ other legal tools to restrict the behavior of former employees. For example, a non-compete would not protect a company when a former employee tries to poach other employees.
“A restrictive covenant can incorporate a whole host of other tools, such as a non-solicitation agreement,” says Brian Chabarek, partner with Davison Eastman Muñoz Paone, P.A. A non-solicitation agreement can stipulate that a departing employee will not recruit other employees for a certain period of time after separation, Chabarek explains.
“Non-solicitation agreements are more commonly...
Why speed, clarity and language matter when false ICE activity claims go viral By Robert Tornabene Since Immigration and Customs Enforcement (ICE) has increased immigration arrests nationwide, loca...