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.
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