When to include a non-complete agreement

On Behalf of | Jul 30, 2022 | Business Transactions |

The terms of an agreement between a Louisiana employer and his or her employees outlines how this relationship will work and the expectations both sides should have. Employment agreements differ from company to company, and the specific terms that should be included depend on the details of the specific role the employee will have. This includes access to closely held or secret information. In these situations, it may be helpful to include a non-compete agreement as part of the contract.

What is a non-compete?

Signing this agreement may be a prerequisite before one enters employment with a company. This is common in situations in which an employee may have access to information that is critical to the company’s competitive advantage or operational success. This may include client lists, secret processes, secret formulas and more. A non-compete agreement protects that information in the event the employee no longer works for that business.

A valid non-compete agreement must be supported by consideration at the time it was signed, and it must be reasonable in scope and requirements. There must be evidence that the agreement legitimately protects the interests of the company. This protection ensures that a former employee does not carry closely held information to a competing company.

Creating a strong non-compete agreement

A non-compete agreement could be a smart inclusion in any employment contract. A Louisiana business may benefit from discussing this possibility with an experienced attorney who can provide insight regarding the most appropriate and effective terms for the specific situation. An assessment of the company’s needs and objectives can help one understand if a non-compete agreement should be part of their employment agreements.