Drafting Effective Restraints on Post-Employment Competition

A former employee possessing knowledge about an employer’s business can have a significant advantage if he or she attempts to compete directly with the employer.  Although, as a general rule, the use of proprietary information by any former employee would be prohibited under the terms of any agreement relating to intellectual property rights, a business can and should seek additional protection against this form of competition by having employees sign noncompetition agreements that prohibit them from competing with the employer following the termination of their employment relationship.  However, care should be exercised in drafting these types of agreements to ensure that they will be enforced.  To learn more, see the article on this subject that appeared in the January 2007 issue of Business Counsel Update published by West/Thomson: Drafting_Effective_Restraints_on_Postemployment_Competition.081007.pdf 

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