Businesses, including franchise businesses, rightly seek to protect their interests by requiring employees to enter noncompete and nondisclosure agreements, preventing them from turning the training and knowledge you invested in them back at you. The problem arises when the agreements are not enforceable, and the protection you thought you had disappears into thin air.
At Gottschlich & Portune, LLP, our business attorneys work with Dayton employers to craft covenants that achieve the goal of protecting the company’s mission-critical information and processes, while still respecting the rights of departing employees.
Enforceable Noncompete Agreements With Teeth
The law recognizes that employers have the right to require noncompete, nondealing, nonsolicitation, nonpoaching and nondisclosure agreements. But you must satisfy the court’s insistence that these agreements be reasonable and not extend infinitely into the future. If the agreements seem to overreach, to demand more than your business’s legitimate interests justify, your agreements may be disallowed, leaving you worse off than you started.
What Activities Should An Agreement Cover?
Noncompete and nondisclosure agreements can cover a wide range of topics, depending on the business model. These are some common things that employees are restricted from doing after they leave the company:
- Working for a competitor
- Soliciting business from the company’s current or prospective clients
- Revealing sensitive information, such as trade secrets
- Communicating with current employees
A good noncompete or nondisclosure agreement should be very specific, or else it runs the risk of being invalidated by a judge. We will work with you to ensure that the terms are allowed within the scope of Wisconsin law. Agreements typically last less than two years, restrict unfair competition in a limited geographic region and cannot place unreasonable restrictions on an employee’s ability to find work. They must also not violate public policy.
You Understand Your Business; We Understand The Law
Let us draft agreements for you that are realistic, assertive and effective, but will not strike a judge as overreaching. This requires knowing the nature of your business, of your locale and of the market in which you do business. The result will be a custom agreement that meets your needs without violating the rights of others.