A non-compete agreement is a critical component of your employment contract. Requiring your workers to sign a statement where they agree to refrain from specific interactions with your competitors can better protect your company and its intellectual property.
Knowing what to include in your non-compete statement can give you peace of mind that you have not left any crucial information out.
You cannot expect your workers to refrain from working with top competitors if you do not define who those competitors are. Explicitly naming all of your competitors is not necessary. In fact, according to Entrepreneur, a reasonable agreement may encourage employee compliance and improve enforceability.
Rather than providing an exhaustive list of companies, focus more on the industries or types of establishments that you do not want your employees to interact with.
Your non-compete should also disclose the duration of the agreement. For example, you can require your workers to wait for 90-days after leaving your company before they consider working for a competitor. If you want to provide an incentive for workers to comply with the agreement, you may consider offering severance pay. You can also define the geographical radius where the non-compete applies.
Because non-compete agreements require careful articulation, missing even one component can jeopardize your company’s protection. Working with an attorney can improve your experience and enable you to draw upon the knowledge of a professional to guide you through the process. Over time, you may need to modify or update your agreement to reflect changes within your company or your industry.