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Noncompete agreements protect your business interests

When you hire someone to do work for you, you want to make sure that person won't take what he or she learns and use it at another company. You don't want your trade secrets leaking to the public or to competitors.

This is why you should consider having a noncompete agreement that all employees sign. This agreement begins when your employer-employee relationship ends and protects you against employees who may violate your trust by giving away your secrets.

You can create a noncompete agreement for employees to sign so long as it follows a few rules. First, it has to protect a legitimate business interest, like a special recipe or software that you've designed. Next, it has to be reasonable. It can't last forever, and it may not be fair to limit a person from working in any other similar company anywhere in the world. Usually, there have to be considerations for scope, time and geography when you design the noncompete agreement.

Finally, you have to have your agreement supported by consideration. That means that the employee must receive something in exchange for signing. In your case, showing that you employed, and paid, the employer is a good example of being supported by consideration.

Noncompete agreements help you protect your business from being taken advantage of. If an employee decides to go against the agreement, you may have a case against him or her to obtain compensation or reparations. Our website has more information on what you can do if your business has suffered as a result of an employee violating a noncompete agreement.

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