Monday, June 22, 2009

Non-Compete Agreements - Closing the Barn Door After the Horse Leaves

Which is how I describe this dialog from Internet Marketing & Affiliate Tips's Use Noncompete Agreements To Help Protect Your Business:
Q: One of my former employees has started a competing business and is calling my clients and trying to steal their business from me. Do I have any legal recourse against him?
– Brad J.

A: I hate to break this to you, Brad, but unless this former employee signed a noncompete agreement while on your payroll, there is probably very little you can do to stop him from wooing your customers. You should discuss the situation with your attorney, but unless this person is also breaking the law in some other way (using stolen trade secrets, for example) your attorney will probably concur with me.

For those of us old enough to remember the idea of nuclear deterrence, you may better understand the use of a non-compete agreement as a deterrent to former employees acting as described above. Which means you need one before the employee leaves.

I will be happy to discuss with any Indiana business their need for a non-compete agreement.

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