loader image

Non-compete agreements, also known as non-compete clauses (NCCs), are contracts that forbid employees from working for a business’ direct competitor or from becoming competitors themselves for a specific length of time after departing from the business. To make this simpler, it is a contract that prohibits an employee from reaching out to former clients.

The Nature of Non-compete Agreements

Non-compete agreements are put in force when relations between employers and employees are over. At that point, the employers seek to keep the employees from competing with them in their next place of employment. That means either with a competing company in the same marketplace or through their own organization in the identical area of business. Such agreements also proscribe employees from asking other members of the original company’s team to leave and work with them in a new venture.

Businesses that May Need an NCC

There are many instances where an NCC may be useful. For example:

  • If your business uses consultants and/or independent contractors
  • Has employees who, upon ending their relationship with your company, may begin working with a competitor
  • Has employees that may start their own business and gain a competitive edge by exploiting your classified data

Such data might include:

  • Trade secrets
  • Ways of operating
  • Sensitive information
  • Client lists
  • Proprietary business practices
  • Product formulas
  • Pricing methods
  • Marketing strategies
  • Employees’ salaries
  • New product ideas
  • Upcoming products
  • Public relations plans

Such workers are frequently required to sign non-compete clauses to avoid the chance of their taking competitive action after their departure from your company. It is meant as a way to protect your business should a relationship sour in the future.

Legal Advice is Vital in Creating a Non-Compete Agreement

Although their objectives may be clear-cut, non-compete agreements need to meet several specific conditions to be put into force. Also, the validity and enforceability of non-compete contracts fluctuate from state to state and from one jurisdiction to another. For these reasons, it’s essential to seek the help of experienced legal counsel to review your non-compete contract. You want to make sure it’s not detrimental or excessively limiting to employees while still meeting your needs.

If you’re considering implementing a non-compete contract for your business, call Bell & Shaw Law, LLC today. We offer a free consultation to discuss the specifics of your case. Our skilled business attorneys can help you to draft an agreement that is both responsive to your wishes and equitable to your employees.

Share:

More Posts

Tips for a Successful Closing

With the Winter season coming quickly here in Chicagoland, you may be feeling the pressure to close that real estate deal. As you prepare to finalize your final purchase, take a moment to make sure you are setting yourself up

Working with an Attorney to Sell Your Home

If you are putting your home on the market, or if you are considering selling other real estate property, you are likely already working with a realtor. However, working with the right experienced attorney from Bell & Shah can make

How to Choose Your Durable Power of Attorney Agent

Completing advance directives is a responsible part of building your estate plan. Not only do you have the opportunity to dictate what matters to you at the end of life, completing certain tasks can give you control over who advocates

Avoiding mistakes when setting up partnerships

As established contractual relationships, Illinois partnerships can be difficult to untangle when things go wrong. When people are preparing to go into business with one another, it is important to take steps to avoid potentially costly errors if the partnership

Consultation Request

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Disclaimer

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

Disclaimer

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

We are committed to removing barriers that prevent persons with disabilities from interacting with or accessing information on our website. If you encounter any difficulty in this regard please let us know and we will make reasonable good faith efforts to fix the issue. 

Skip to content