Does your company use a non-compete clause or agreement? Have you thought about adding it? What exactly is a non-compete agreement?
If you have an employee with certain skills, let’s say a massage therapist, the non-compete clause says they can’t then go work for a similar company within a certain number of miles. It’s good faith that they won’t come to your business, then move across the street and take your customers with them.
Maybe you have a cookie business and have a secret recipe. After an employee knows that recipe by heart, they aren’t going to create their own cookie business and compete against you. It’s usually set for a certain number of miles or months or years.
This means they aren’t consulting, managing, owning or directly going against the owner they worked for.
That means no taking clients, no spilling trade secrets and other information. What do you have in place to make sure this doesn’t happen?
A simple non-compete agreement can resolve these issues up front.
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