Trade Secret & Non-Compete Employment Agreements
Employers may require their employees to sign employment agreements not to work for other companies in the same line of business during, and for a limited time after, employment. Employers may require these agreements as a condition of hiring or continued employment. However, employers may have to give something of value to current employees in order for the agreements to be valid. These agreements are generally enforceable unless they are unreasonable. Agreements may be unreasonable if they violate the law, last for too long after the employment relationship ends, prevent the employee from finding another decent job, are designed just to hurt the employer’s competitors, or are not necessary to protect the employer’s business. If the employee is fired, or if the employee quits after being asked to do something illegal the agreement may not be enforceable. In case of dispute, you should consult with an experienced employment attorney.
Employers may also require their employees to agree not to share confidential information with other companies, or use the information for their own purposes. Confidential information includes terms such as manufacturing processes, customer lists, and financial information that is supposed to be kept private. These employment agreements can apply only to secrets learned while working for the employer, and cannot prevent employees from using or sharing information they find independently. Furthermore, employers cannot use these agreements to prevent employees from reporting illegal activities. An employment attorney can help you identify your legal rights and options.
Some examples of unlawful trade secret and noncompete employment agreements are:
- You have a noncompete agreement that prevents you from working in a very broad area, such as an entire state.
- You have a noncompete agreement that lasts longer than it takes your former employer to find and train your replacement.
- You have a noncompete agreement that only prevents you from doing certain things, but those things happen to be important parts of your line of work.
- Your employer never tells you about a noncompete agreement and then tries to enforce one after you leave.
- Your employer tries to use a trade secret agreement or a noncompete agreement to prevent you from reporting illegal activities.
Nichols Kaster & Anderson, PLLP has litigation experience in many types of cases, including those involving trade secret agreements and non-compete employment agreements. If you think you may become involved in litigation with your employer, feel free to contact us.
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