We are hiring a new employee and want to have a Non-Compete Agreement, can you help?

These days most small business employers do not meet the requirements for a non-compete. There are federal and state rules that apply to non-competes. The rules are always changing and very few non-compete agreements are upheld due to not meeting the eligibility requirements, meaning you spend a lot of money defending your non-compete agreement and possibly paying the other party’s fees as well for a whole lot of nothing. Many states restrict a company’s ability to prevent an individual’s employment opportunity, especially in the same industry that they are trained or educated in.

Instead, we suggest using a Non-Solicitation and Confidentiality Agreement. Use of this agreement prevents employees from sharing confidential company information (such as recipes or processes) and restricts them from attempting to take away your business relationships with customers, vendors, contractors, etc. for the duration of their employment and for up to two years after employment.

You can save a lot of time, money, and stress simply by reaching out for a quick 15-30 minute conversation with your attorney about the best solution for your situation. They can steer you in the right direction and provide you with the agreement or template for your use.

This Q&A does not constitute legal, accounting, or tax advice and

does not address state or local law.