“My family operates an up-scale Italian restaurant and our employees are paid much more hourly than comparable establishments. We hire college grads, dedicate a great deal of time to training from hospitality professionals who cover everything from understanding the menu, to proper grooming, how to conduct yourself as a professional server, and related skills.”
“Most restaurant owners face the problem of hiring, training, and then the employee jumps ship for a similar restaurant, often for as little as a dollar more an hour. I have never used an actual, signed, employment contract, but wonder if I can have a non-compete clause, limiting employees from working in a similar type of a restaurant within, say, 50 miles? Thanks, ‘Luigi.’”
What is a non-competition agreement?
To find out the ins and outs of non-compete clauses, I consulted with attorney Steven Kelly, former associate commissioner with the New York City Department of Consumer and
Worker Protection. He is an instructor with Ontario, Canada-based LearnFormula, which provides continuing education and professional-development podcast courses.
“A non-compete is a clause in a contract, signed at the start of employment, that prohibits the employee from competing with the employer directly or indirectly for a specific duration of time and in a certain geographic area, after their employment has ended,” Kelly points out, adding, “If one party breaches the agreement, they may have to pay damages or cease certain...
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