{"id":4677,"date":"2016-04-04T10:47:40","date_gmt":"2016-04-04T15:47:40","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/creating-an-enforceable-noncompete-agreement.html"},"modified":"2024-06-06T04:41:52","modified_gmt":"2024-06-06T09:41:52","slug":"creating-an-enforceable-noncompete-agreement","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/creating-an-enforceable-noncompete-agreement.html","title":{"rendered":"Creating an Enforceable Non-Compete Agreement"},"content":{"rendered":"\n
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Creating an Enforceable Non-Compete Agreement<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Today’s increased job mobility and the amount of information available online have led many small businesses to turn to non-compete agreements (NCA). A valid agreement can protect trade secrets<\/a> and other valuable assets. A well-written agreement can limit a former employee’s ability to start a competing company or steal clients when they leave.<\/p>\r\n

However, a poorly written agreement is unenforceable and can open the business owner to legal action or civil penalties. Many state laws no longer honor non-compete contracts or only allow them in very narrow circumstances.<\/p>\r\n

If you believe your business needs a non-compete agreement<\/a>, read on to learn how to write one that is enforceable. If you live in a state without enforcement, there are alternatives to these agreements that can protect your confidential information.<\/p>\r\n

How Non-Compete Agreements Protect Your Business<\/h2>\r\n

In general, a non-compete agreement is part of your employment contract. You should include the non-compete clause with the contract or employee handbook when a new worker joins the company. You can also have the worker sign later and add it to their personnel file.<\/p>\r\n

An NCA states that workers cannot reveal confidential or proprietary information they learned while in your employ. It may also prevent an employee from competing with you in other ways, such as:<\/p>\r\n