Non-compete agreements for remote employees

On Behalf of | Jan 3, 2022 | Employment Law -- Employer |

Employment policies addressing remote employees working second jobs may protect a business from a two-timing workforce. An employee handbook could provide clear guidance regarding a company’s expectations of its remote workers. Companies with work-from-home employees may also ask remote workers to sign non-compete agreements.

According to the Society for Human Resource Management, some virtual employees run side businesses or work for more than one employer. As reported by The Wall Street Journal, work-from-home employees discovered ways to increase their incomes that also disadvantage their employers.

Companies may reduce the risks of two-timing moonlighters

By having more than one work-from-home job, between 2% and 3% of workers doubled their pay. White-collar employees in industries such as banking found success at the expense of one of their two employers.

When hiring WFH employees, businesses may ask new hires to sign a non-compete agreement. The contract’s terms may expressly prohibit working for another employer. Employees may also face termination for misusing a company’s client list or providing similar services to competitors.

A non-compete agreement outlines employee restrictions

As reported by Business.com, employers may ask new hires to sign a non-compete agreement before they begin working. A restrictive covenant may limit a WFH employee’s ability to compete with an employer. Some contracts may define a timeframe that prohibits a former employee from working for a competitor after a termination or quit.

Non-compete agreements often outline how long former employees must wait before they start a business offering similar products or services. A contract with restrictive conditions also protects data and intellectual property from misappropriation. Employees breaching an agreement may face legal action.

An experienced employment attorney helps employers take steps to avoid costly disputes. Any issues that might arise could also resolve efficiently.