Running a business often involves information that you want to keep confidential for a variety of reasons. Whether it is trade secrets, operational procedures, or sensitive client information, it is vital to the success of your business to prevent any competitors from gaining access to such information. When one of your employees goes to work for a competitor, however, there is the risk that they will divulge sensitive information to the detriment of your company.
To avoid this exact situation, many companies expect employees to sign a contract called a “non-compete agreement.” This is generally signed when other employment contracts and documents are signed at the beginning of the employment relationship. There are many legal considerations for both employees and employers when it comes to non-compete agreements, as legal disputes often arise from this type of agreement.
If you have any questions about a non-compete or are facing a conflict regarding the enforcement of a non-compete, the legal team at HKM Employment Attorneys in Las Vegas is here to help. We can review non-competes prior to signing and can address allegations regarding breach of the agreement. Call our office to discuss your legal needs today.
Legal Issues with Non-Competes
Too often, employees are not aware of the implications of everything they sign with their employment documents. An employee may not realize the restrictions put in place by a non-compete or may simply disregard them. If they do go to work for a competitor directly from your company, you may need to bring a legal claim to enforce the non-compete agreement.
In addition, many employees who signed a non-compete will later realize that the terms of the agreement were unreasonable. They may bring a legal challenge to the agreement, asking that it not be enforced so that they may be free to work for competing companies.
- The agreement must be reasonably necessary in order for the business to protect itself and its information;
- The agreement may not be too broad in terms of geographical or temporal scope or other restrictions on the employee;
- The agreement cannot be too vague without clear restrictions;
- The agreement cannot cause undue harm to the employee or to the public.
Perhaps not surprisingly, many business owners try to set forth non-competes that are overly broad and have unreasonable restrictions on a former employee. While this may seem like a good idea at the time, it can often lead to legal issues with that employee down the road. It is wise for any business to have an experienced employment attorney draft and review any non-competes to ensure they are in compliance with the law. In addition, employees should have an attorney review any contracts before you sign them.
Discuss Your Legal Needs With Our Nevada Non-Compete Attorneys Today
HKM Employment Attorneys helps both employers and employees in and around Las Vegas enforce and challenge non-compete agreements. If you would like to discuss an employment contract, please contact our employment lawyers for help today.