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Benefits of a noncompete agreement

On Behalf of | Jan 20, 2022 | Employment Law

Many Plano area businesses have grown and created a competitive formula to make them successful. An employer may worry that an employee will one day leave the company and start their own business using the methods the company developed. An employer may want to have an employee sign a non-compete agreement before beginning work as a means to protect their methods and prevent the future risk of problems.

There are many benefits in having a noncompete agreement for a business. These include the following:

  • Protecting privileged information from disclosure: Many companies have worked hard and invested a great deal of resources into training employees who now have access to privileged information. These employees have access to critical information and maintaining the secrecy of this vital information is important. A noncompete agreement can prevent an employee from opening their own company with this information or sharing information with another competing company.
  • Prevent unfair competition: A business owner cannot sell a business and then turn around and start a competitive business that directly competes with their old business.
  • Employees may not leave as quickly: A noncompete clause may help retain employees for a longer period of time.

A legal professional who is skilled in employment law can help a company draft an employment contract and advise their client on whether a noncompete agreement can be an asset to their company and help protect them against any future problems. A noncompete agreement can be beneficial for many companies and consulting with an attorney is a good first step.