A covenant not to compete, also known as a non-compete clause or a non-compete agreement, is a business law agreement between an employer and an employee. In a non-compete agreement, an employee makes certain promises to an employer.
Certain businesses have information and clients that are highly desired by competing businesses. It is possible – and it has happened many times before – that an employee could leave the current employer and work for the direct competitor. What prevents the former employee from divulging trade secrets and client information to the new employer? A non-compete agreement is a verbal or written contract preventing the employee from taking these actions.
Under this type of agreement, the employee is stealing information and resources from the former employer. The exact terms of non-compete agreements vary, but generally include:
- A reasonably restricted geographic location in which the former employee may not work in direct competition.
- A reasonable time period in which the employee must adhere to the restrictions of the agreement.
- A description of what the employee is restricted to share or divulge. These restrictions must be reasonable and aim to protect legitimate business interests.
The business law attorneys at Gary E. Patterson, P.C. have the experience necessary to pursue enforcement of your agreement, and will aggressively litigate your case if necessary. If you need legal representation enforcing the terms of a business contract, please contact the experienced business law attorneys of Gary E. Patterson, P.C. at (713)223-3095, to schedule a complimentary consultation.