What is a non – compete agreement and why is it important
Non-compete agreements are important for business owners and entrepreneurs because:
- A non-compete is contract between the employee and employer that prohibits the employee from entering the marketplace as a direct competitor of the employer.
- Non-competes are effective and enforceable both during and after the employment relationship ends.
- Typically, the time period of enforceability after the end of the relationship must be realistic for that industry.
- Additionally, depending on the industry, the geographic scope or marketplace must also be realistic and reasonable.
- Non-compete agreements are important to have because, as a business owner you don’t want someone you hire, train and give access to to then open up shop across the street or in the same market. Confidentiality Agreements are important for business owners and entrepreneurs because:
- Confidentiality agreements are commonly known as non disclosure agreements (NDAs).
- They are a promise to keep the information you share in your business a secret.
- NDAs are either mutual–meaning both parties to the agreement have information that should be kept secret or more commonly, unilateral.
- A unilateral NDA is typical for business owners.
- Confidentiality agreements/NDAs are vital to a business owner to protect their intellectual property, client lists, standards and procedures or other trade secrets.