Noncompete Agreements Provide Many Benefits to Small Employers

08/10/2014 // Dallas, Texas, United States // Attorney Keith Clouse // Keith Clouse // (press release)

As Dallas noncompete lawyer Keith Clouse explains, small businesses can derive huge benefits from entering into noncompete agreements with key employees.

These benefits include:

• Increased trade secret protection. To qualify for trade secret protection, a company must demonstrate that it took steps to preserve the secrecy of its trade secrets. The use of noncompete agreements is a factor a court would look at in determining whether a business utilized reasonable means of protecting its information.

• Protection of client and customer relationships. A noncompete agreement gives the employer time to rebuild its relationship with a customer after the employee with the most direct connection to the customer resigns.

• Protection of the company’s investment in training. Noncompete agreements prevent competitors from poaching a business’s employees after the business has invested the time and expense to train them.

• Enhanced value to a potential purchaser. The purchaser will know that key employees will either stay on after the purchase or be prohibited from taking their knowledge and relationships elsewhere.

Minimized litigation costs. An employer can control the venue, forum, alternative dispute options, and other litigation elements with a noncompete agreement.

This article is presented by the Dallas employment lawyers at Clouse Dunn LLP. To speak to Mr. Clouse about a noncompete agreement, send an email to [email protected] or call (214) 239-2705.

Media Information:

Address: 1201 Elm Street Suite 5200 Dallas, Texas 75270 – 2142
Phone: 214.220.2722