A non-compete agreement aids businesses in protecting sensitive information. A well written non-compete agreement can protect a business’ interests in many scenarios. This information can range between a wide variety of business aspects which include strategies, financial info, specialized training, clientele – you name it. These types of agreements are important for any business that employs people who are subject to sensitive information. We’ve discussed the most recent changes to Nevada non-compete agreements in a previous blog (Is Your Nevada Non-Compete Agreement Still Valid?) and today we’ll go into more detail as to what you would want in a non-compete agreement as a business owner.
When it comes to protecting proprietary information in a non-compete agreement, you must first be able to clearly identify what it is you would like to protect. Your agreement should state specific business interest/s that an employee has access to. A confidentiality agreement should also be signed in this instance. In an event of a possible breach, a company will need to identify what proprietary information may be in jeopardy of falling into the wrong hands.
Make sure to clearly classify the parties involved in the non-compete agreement. This step seems pretty obvious but there may be scenarios that are easily overlooked here. Consider consulting with a Nevada business attorney before presenting your non-compete agreements to future employees.
A business should also specify the parameters of the non-compete agreement but must practice care since it will need to be within reason. Extreme restrictions may make your non-compete agreement null in the eyes of a court and thus leaving your business interest at risk. When setting parameters, time and distance are the two most common limitations that a judge may decide to be unreasonable. Yes, you will want to protect your business but being heavy-handed in your non-compete conditions may work against you.
There are many other aspects you’ll want to include depending on your business situation and industry. A carefully tailored non-compete agreement can give any business owner assurance when it comes to his/her business interest. It would be devastating to see your business damaged due to a poorly written non-compete. It’s good practice to scrutinize and have these contracts reviewed by a contract attorney as your business grows and changes.