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Including a non-compete clause in employment contracts

On Behalf of | Jan 29, 2024 | Business & Corporate Law

As a business owner, you understand how important it is to take steps to protect the interests of your company. This includes making sound financial investments, monitoring the health of your business and ensuring that you have a good relationship with your employees. One of the most practical ways you can have strong employee-employer relationships is to have strong, thoughtful and carefully drafted employment contracts. In your contract, you may need to include certain clauses for the interest of your Florida company.

One of the clauses you may need to include is a non-compete clause. These are terms that prevent your employees from leaving your business to work for a competing company for a certain amount of time. These clauses and others can help you shield your interests for years to come, lowering your chance of legal disputes and other problems.

The terms of your contracts matter

Regardless of the nature of your business and the requirements you have for your employees, having contracts in place can be useful. These agreements outline the role that the employee will have, his or her responsibilities, terms for compensation, paid leave policies and more. It can also include terms for where an individual can seek employment after leaving your business. A non-compete clause can ensure that the employee does not immediately work for a competing business, perhaps taking sensitive and proprietary knowledge and information with him or her.

You can also include other types of clauses in your employment contracts that may be useful. A non-disclosure clause may be useful as it prevents an employee from using closely held information that belongs to your company, such as client lists, secret formulas, proprietary processes and more, for his or her own benefit or the benefit of a competing company. These types of clauses can protect your information and ensure that your information remains where it belongs.

Drafting strong contracts

It is helpful to create contracts that are specific to the nature of your business operations and the type of protection you need. If you are unsure of what your company may need to include in your employment agreements or whether non-compete terms are necessary, you may find it helpful to discuss terms with an experienced business law professional. This ensures that your contracts are thorough, enforceable and specific enough to provide you with protection and peace of mind.