Few people work at one place their entire career. When transitioning from a job, it is common to be asked to sign non-compete and non-solicitation agreements. One issue which frequently presents itself is the inclusion of a covenant not to compete or solicit customers or employees. “Non-compete agreement” is a term used in contract and employment law to define an agreement between employee and employer that requires the employee not to enter into employment with a competing company or compete independently or in a certain market. In order for the provision to be effective, consideration is required. In other words, the employee must derive some benefit, whether it is money, or a promise of continued employment, in exchange for his/her agreement not to compete for a period of time. These restrictive covenants not to compete, when presented upon termination, resignation, or layoff, are based on the possibility that an employee might gain a competitive advantage by using knowledge of their former employer’s operations, trade secrets, or sensitive information such as customer/client lists, pricing formulae, business model, technologies, products, and marketing analyses and plans. Contrary to what some human resource professionals may advise or practice, not all situations fit a pre-ordained formula or mold. At Gilbert Law Group, we pride ourselves in devising packages and non-compete and non-solicitation agreements which meet the particular circumstances and individual needs of our clients.
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