As a business owner, you don’t want your employees to take your ideas and begin competing with you, or even take your clients. To prevent this, a non-compete agreement is a good idea.
When you have employees sign a non-compete agreement is important. The best time is when you hire someone. It is then that you have the opportunity to offer the potential employee the proper consideration for signing it – confidential information, trade secret information or stock.
If you have existing employees and want them to sign a non-compete agreement, seek legal counsel as you’ll need to offer the employees something for signing it. Otherwise, it may not stick in court.
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