Noncompete Agreements

Protect your trade secrets with enforceable noncompete contract agreements

Non-compete agreement forms help small businesses safeguard their trade secrets. Companies can protect recipes, client base, industrial and manufacturing secrets that competitors could use to gain an edge in business. No employer wants to waste time and money training employees only to have them defect to the competition, often with access to valuable information that your competitors could use to their advantage.

Small business owners must be careful when introducing a noncompete clause to employees. A vital aspect of noncompete contract agreements is the contract has to relate to the area of business between the employee and employer. To be enforceable in a court of law the noncompete contract can’t place undue restrictions on an employee that would prevent them from being able to work in their profession. Regardless of the clauses included in your noncompete agreement their enforceability depends on the state where you conduct business. Before getting employees to sign a non-compete clause, consider the following:

1. Seek to establish a noncompete agreement that covers particular issues that relate to your type of business.

2. Design a customized form that fits your state and small business needs.

3. Consult with a lawyer to create a reasonable non-compete agreement.

 

Access a broad range of noncompete forms

Review the protection offered by noncompete agreements. Depending on your business and employees' access to confidential information, you may be able to use standard forms. Select a noncompete agreement that can keep your business information confidential.
Try: Download a noncompete contract designed for use in your state at FormsGateway.com. Legalmessenger.com offers noncompete agreement forms bundled with non-disclosure and other employment forms. Customize noncompete agreements and other forms with Business Attorney software from H&R Block.

Narrow down specific standards to include in noncompete agreements

Understand the type of restrictions usually included in a noncompete agreement. Review a variety of samples of non-compete forms to create reasonable restrictions that make sense for your small business. Also, determine which employees should sign noncompete agreements.
Try: Business Owner's Toolkit provides examples of effective language to use in noncompete contract agreement. Lawyer Central's non-compete agreement video offers valuable information on creating an enforceable form. Order the audio seminar from HRhero.com to learn how to create multi-state noncompete forms that are enforceable.

Contact a lawyer in your state to discuss non-compete agreement forms

Enforceability of noncompete contract forms varies by state. Discuss your business and trade secrets with a local employment lawyer to ensure your agreement can stand up in court.
Try: Review employment lawyers by city or state at FindLaw. Locate lawyers specializing in non-compete contract agreements by state and compare law firms at martindale.com.

 

• A few states, including CA, consider non-compete forms to be illegal in most cases.
• A noncompete agreement must include a restricted duration, typically no longer than a year, in order to be enforceable in court.

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