How to Handle a Dispute over a Non-Compete Agreement


If a previous employee left your company and started a similar business on his own, this new business might become one of your biggest competitors. Now, if this employee had signed a non-compete agreement, you may have the legal right to stop him from operating his business. Merely asking this person to stop what he is doing may not be enough to convince him, though, but hiring a lawyer for commercial litigation may help.

What Is a Non-Compete Agreement?

Non-compete agreements are used by many businesses for protection. When you hire people to work for you, they will see your processes and procedures, and they may be exposed to many of your trade secrets.

By having your employees sign a non-compete agreement, they are agreeing that they will not compete with your business if they stop working for you. By agreeing to this, they will not be able to use your trade secrets or procedures to make money. This is done primarily as a way to protect the future of your company.

Do Non-Compete Agreements Have Stipulations?

Most non-compete agreements are designed to last for a certain length of time, and they may include a certain distance. For example, your non-compete agreement might state that the person cannot open a similar business within two years of leaving the job. It might also state that the person cannot open a similar business within 50 miles of where your business is located.

These are normal stipulations included in most non-compete agreements, but there may be others as well.

What Happens When Someone Breaks the Agreement?

If you find out that an ex-employee has opened a similar business too soon after leaving your company, there are steps you can take to stop the person from doing business. Sending a letter to him or her might be a good first step, but if this doesn't work, you can hire a lawyer for commercial litigation.

Commercial litigation is used to help two parties resolve a conflict they have. In this case, the litigation would involve proving that the other party broke the terms of the signed non-compete agreement. If this is something that you and your lawyer can prove, the other party will have to stop what he or she is doing.

If you are having any type of problem in your business and cannot resolve it on your own, you may want to hire a lawyer like D.B. Clark Law Office for commercial litigation services.


29 April 2015

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