Non-compete agreements can protect a company’s assets

Because companies in California spend considerable time screening applicants before they choose to hire them, they may think that once trained, these employees will be around for a while. However, organizations should designate just as much time to implement measures designed to hold their employees responsible and establish clear expectations to avoid compromising valuable assets if employees, they believed to be loyal, choose to seek employment elsewhere. 

One aspect of an employment contract that companies should make sure to include is a non-compete clause. This section should address the company’s expectations for its employees to maintain the confidentiality of classified information. Part of this commitment will require employees to abstain from seeking employment from competitors at least for a designated period of time beyond their termination from the company for which they are currently working. suggests that in some situations, companies implement a loose non-compete agreement with little to no plan to actually enforce it if their employees breach their agreement. Using a non-compete as a scare tactic is often enough to prevent employees from finding jobs at competing organizations, however, there are still situations where non-competes are breached and a court battle may ensue causing both parties significant resources. 

Forbes highly recommends that business professionals rely on the experience and knowledge of an attorney in creating, implementing and enforcing a non-compete clause in their employment contract. Their collaboration with a legal professional can help organizational leaders to avoid the headache, later on, resulting from a non-compete agreement that was not legally enforceable. Whether or not non-competes are enforceable at all varies from state to state.