The Non-Compete Agreement- Beware: One Size does NOT fit all!

Updated: Aug 2

Employers often use non-compete agreements to protect their valuable assets, namely to have some assurance that their proprietary information and trade secrets will not be made available to competitors. Many business owners use a template that they downloaded from the web or got from a friend that owns a business/ had access otherwise. Saves on cost, right? Not really in the long run. What most do not understand is that just as important as it may be to have that non-compete agreement, it is equally as important to draft it so that it is ENFORCEABLE.

While non-competes can be enforceable, they must be reasonable and serve a legitimate business purpose, among other things. Further, there are a number of factors that will determine if a non-compete agreement will be enforceable, including industry, duration and geographical scope. If a non-compete is not up to snuff, a court can limit it to ensure that it is- or strike it completely. This will take time, money and resources. Do not let this be you! Do not assume what works for one business will work for yours too- one size does not fit all! Consult with an attorney to ensure that your agreement is drafted appropriately. Contact GLLG today to assist you!


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