Post by prantogomes141 on Feb 14, 2024 9:29:52 GMT
If your noncompete agreement is written incorrectly or outside of state law, it will do nothing to protect your business. If you want to create an agreement that is enforceable and effective, there are a few additional steps to take. Consult an attorney to verify state laws. Noncompete agreements are state-specific. Some states can even impose penalties on companies that require an employee to sign a noncompete that does not comply with the laws of that state. Therefore, you must be thoroughly informed about the state laws governing your noncompete agreement.
Employers should consult an attorney before having their employees sign a noncompete. “Particularly right now, when many employees are working remotely, it’s important to know that the law of the state where the employee is working may govern the noncompete, rather Nepal Telemarketing Data than the law of the state where the company is located,” Fontanesi said. Include a severability provision in your agreement. Because the effectiveness of noncompete agreements may vary, Williams advised small business owners to include a severability provision, a clause in the contract that severs any unenforceable provisions. “Usually, if a provision in an agreement is found to be unenforceable, then the whole agreement can be held invalid, unless there is a severability provision,” Williams said. “
Thus, if you are unsure of the effectiveness of including a noncompete, you may still include one in your agreement alongside a severability provision without running the risk of invalidating your whole agreement. If the noncompete is found to be invalid, [the unenforceable portion] will be severed from your agreement while maintaining the rest of the agreement in full force.” Consider other protective measures. In addition to noncompete agreements, companies can consider other protective measures, such as having their employees sign a PIIA. “A PIIA can protect the company against an employee stealing their proprietary information, including customer lists, contact information of business partners and other valuable or confidential information of the employer,” Fontanesi said. “Other alternatives to consider are nonsolicit agreements, or agreements not to hire or recruit employees.”
Employers should consult an attorney before having their employees sign a noncompete. “Particularly right now, when many employees are working remotely, it’s important to know that the law of the state where the employee is working may govern the noncompete, rather Nepal Telemarketing Data than the law of the state where the company is located,” Fontanesi said. Include a severability provision in your agreement. Because the effectiveness of noncompete agreements may vary, Williams advised small business owners to include a severability provision, a clause in the contract that severs any unenforceable provisions. “Usually, if a provision in an agreement is found to be unenforceable, then the whole agreement can be held invalid, unless there is a severability provision,” Williams said. “
Thus, if you are unsure of the effectiveness of including a noncompete, you may still include one in your agreement alongside a severability provision without running the risk of invalidating your whole agreement. If the noncompete is found to be invalid, [the unenforceable portion] will be severed from your agreement while maintaining the rest of the agreement in full force.” Consider other protective measures. In addition to noncompete agreements, companies can consider other protective measures, such as having their employees sign a PIIA. “A PIIA can protect the company against an employee stealing their proprietary information, including customer lists, contact information of business partners and other valuable or confidential information of the employer,” Fontanesi said. “Other alternatives to consider are nonsolicit agreements, or agreements not to hire or recruit employees.”