Non-compete agreements protect your business

On Behalf of | May 27, 2022 | Firm News |

As a Philadelphia business owner, you worked hard to establish yourself and your company in the world. The last thing you want is to lose valuable information or customers because of former employees.

A non-compete agreement is a tool that may help shield you from such occurrences.

Non-compete agreements help prevent unfair competition

A certain level of competition is normal and healthy for the economy. However, unfair competition also exists. For instance, an entrepreneur may sell you a business and then turn around and use the money from the sale to start a similar business you now have to compete with. This individual would also possess the advantages of an established customer base, supplier sources and detailed market knowledge. A non-compete agreement may prevent this by limiting the seller to only establishing a competing enterprise a certain period after the sale or a set distance away.

Non-compete agreements help ensure your information remains yours

It is not uncommon for employees leaving a business to create their own startup or join competing companies. The problem arises from their access to your company’s secrets and sensitive data. There is a risk they may use it to compete with you or to aid others who compete with you. A non-compete agreement restricts them from sharing classified information and ideas and may also keep them from working for a competing company or starting a competing business for a period.

Having a professional employment lawyer to aid you in the drafting and enforcement of non-compete agreements and the swift resolution or prevention of costly disputes may be beneficial. Non-compete agreements have the ability to cover many areas but need to be reasonable. It is also imperative to understand the options you have for enforcing such contracts, including going to court.