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Showing posts with label non-compete. Show all posts
Showing posts with label non-compete. Show all posts

Friday, November 8, 2013

How to Create an Effective Non-Compete Agreement

A Non-Compete Agreement is a legal document used by business owners to restrict their employees from doing things that will damage the business, such as trying to convert customers or using inside knowledge or trade secrets, after they leave the company.



In New York, Non-Compete Agreements have been historically hard to enforce. The New York Court of Appeals has set strict guidelines that Non-Compete Agreements must follow in order to be considered valid in a court of law. The most important factor in whether or not a Non-Compete is enforceable is whether it is considered reasonable. The agreement must neither place undue hardship on the employee nor place any restrictions on the employee that are greater than needed to protect the company's legitimate interest. Despite the difficulty in enforcing Non-Compete Agreements, it is wise for small business owners to look into drawing up a valid agreement in order to protect their business. Below are some tips that can make your Non-Compete agreements more likely to be enforced in court.