Legal Blog

Should Your Company Use Non-compete Agreements?

For many companies, non-compete agreements are employed to protect intellectual property, client information, trade secrets, business plans, etc. If, for example, a tech company trains its employees to make valuable creative contributions to its product line, it cannot permit those employees to take their training, knowledge, and expertise to another employer.

Imagine what would happen to a company if an employee developed a unique new computer chip, then left the company with the knowledge of how to re-create that chip. The company would lose a significant competitive edge in the marketplace.

Here’s another example: One of my clients invests heavily to train his employees to use sophisticated machinery. Once trained, those employees are not expected to leave and seek employment with a competitive company.

His employees represent a significant value, and their non-compete agreements not only reduce the likelihood that they will leave, but also reduce the likelihood of employee-poaching by other companies.

If an employer wants to restrict an employee from seeking employment with a competitive company or starting his or her own business, a non-compete agreement, if reasonable, can prevent that from happening.

Click here to read the entire article featured in the Daily Record.

About Howard Kurman

Howard Kurman website410.209.6417 | hkurman@offitkurman.com Howard K. Kurman is an employment attorney and chair of the firm’s Labor & Employment Practice Group. Mr. Kurman regularly counsels clients on all aspects of proactive employment/labor issues. He represents employers ranging in size from as small as 20 employees to those employers with geographically disparate locations consisting of over 4,000 employees. Mr. Kurman assures, through regular contact with his clients, that they promulgate and maintain the most effective employment policies that will, to the extent possible, minimize their legal exposure in today’s litigious workplace. Mr. Kurman offers advice on employee handbooks, employment agreements, and covenants not to compete as well as confidentiality and non-disclosure agreements. You can also connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn