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Creating a fair noncompete clause for businesses and employees

As a business owner, you want to make sure your interests are protected, which include trade secrets and the loyal client base you’ve worked hard to build. Naturally, you would not want your employees leaving the company using information they learned while in your employ to create a similar business and take your customers. While a little competition in Las Vegas can be good, at Aldrich Law Firm, Ltd., we understand the differences between healthy and unfair competition. You may be able to protect your trade secrets and limit unfair competition by having your employees sign noncompete agreements. It is just as important to ensure these agreements are fair for those in your employ.

What makes a good noncompete agreement? According to Monster, noncompete agreements generally limit your employees from working in a similar industry for a certain time period within a geographic area. For example, if you own a bakery specializing in artisan breads, you might have your employees agree not to open up their own bread bakery within a couple miles from yours for up to five years. In this way, you would stand a better chance of protecting your own recipes and baking methods, while at the same time restricting a former employee from luring away your established customers. However, it would not be fair to restrict a former worker from getting employment elsewhere. In this case, prohibiting your employees from seeking work at any type of bakery after yours might not be considered a fair noncompete agreement.

Employment contracts that are fair and reasonable may help you attract and retain valuable employees, as well as protect your business interests. Learn more about employment agreement matters by visiting our contract litigation page.

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Aldrich Law Firm, Ltd.
1601 South Rainbow Boulevard
Suite 160
Las Vegas, NV 89146

Toll Free: 877-508-0433
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