In these economic times, employees are finding ways to maximize their incomes and businesses are trying to reduce costs and minimize losses. Turnover and job loss are common and one way a company can protect itself is to have employees sign non-compete contracts, non-disclosure agreements and/or non-solicitation agreements.
In a non-compete contract, an employee agrees not to pursue a similar profession or trade in competition against the employer. The non-compete agreements are to protect the employer from theft of confidential proprietary information.
If an employee, by lay-off or resignation, begins working for a competitor, they could intentionally or unintentionally share:
- Valuable Trade Secrets
- Company Assets (Employees, Technology, etc.)
- Client Lists
- Business Practices
- Marketing Plans