In today’s business setting, non-compete agreements (NCAs) have become a common sight. At the core, NCAs prevent anyone trusted with company-sensitive information from sharing this knowledge with competitors or other parties.
In that regard, these legally-binding contracts help ensure your company’s executives and personnel take a responsible approach to the security of proprietary data and methodology, including technology, creativity, sales tactics, and more.
As a business owner, you expect to work with trustworthy employees and partners. Unfortunately, not everyone adheres to the same code of conduct. That’s where NCAs can be a valuable tool to safeguard the continued success of your company. Here’s what you need to know about these important documents:
Protection from Malice
As more companies focus on fostering positive corporate culture, team building, and employee-bonding exercises, the risk still exists that a disgruntled worker may attempt to undermine the prosperity of your business.
For example, consider an employee who is terminated for unsatisfactory performance. In retaliation for the perceived affront, this worker immediately defects to a competitor. Here, they share trade secrets and confidential data from the former employer. In addition, they begin soliciting the former organization’s clients.
Without an NCA in place, there is little recourse for business owners. However, proof of employee-signed comprehensive documentation requires former team members to honor these contractual obligations.
Streamlined Legal Action
When a non-compete agreement is breached, you have the right to file a lawsuit and seek appropriate damages. This allows you to recoup potential profit loss resulting from the former employee’s actions, as well as injunctive relief to prevent further harm.
Without such a contract in place, there may be little legal recourse available. That means you could face catastrophic loss that might threaten to shutter your business indefinitely.
Depending on the extent and nature of former worker contempt, however, it might be possible to seek and recover damages in other ways. In that case, it’s wise to contact a skilled and qualified Daytona Beach criminal lawyer who can help you realize all legal options available.
Improved Employee Relations
Some employers are hesitant to implement non-compete agreements and similar policies for fear they’ll turn away potentially-stellar employees or alienate current team members. In fact, research suggests workers are more apt to get on board with NCAs when presented with opportunities to fully understand the intent behind them, as well as the mutual protection such documentation provides.
Team members want to visualize the company’s growth, and the tools in place to help foster and protect that development. When this happens, many will adopt a heightened sense of pride and duty for their role in helping to ensure business prosperity. They’ll also be aware of how such contracts contribute to the advancement of their own careers.
Heightened Peace of Mind
Creating and implementing comprehensive non-compete agreements puts many employers at ease. It’s important, however, to fully understand state laws, including special conditions and necessary considerations. For this reason, it’s best to work with a trusted and reputable attorney who can guide you toward the best course of action for your unique business needs and requirements.
For more than 30 years, our law firm has fought to retain the rights of countless Florida residents, and clients living abroad. Along with commercial litigation, we specialize in corporate/business law, criminal defense, personal injury, and more. In addition, we’re proud to be known as a premier immigration attorney in Daytona Beach.
Contact us today with questions about NCAs, commercial litigation issues, and all your legal needs.