Non-competition or Non-compete Agreements

Allison recently took a new job selling medical equipment where she’s quickly developed a full list of loyal clients. At a previous company, she had a similar position and had signed a non-competition agreement. She loves her new job – and the better paycheck – but she’s worried she might be violating the agreement with her past employer…..

Daniel owns a small business employing a staff of chemical engineers who research products for the agri-business industry. They seem to enjoy their work and function well as a team. He trusts his employees, but he worries that valuable research and intellectual property could be transmitted to another company if one of his employees took a position at a similar firm – which would be a devastating financial loss for Daniel…..

Over the past 20 years, Jonathan has developed a successful tax consulting business with offices in a dozen major U.S. cities. He’s proud of his team and the thousands of clients they serve with a unique tax management system that he created. Jonathan knows his company’s future is protected with non-competition agreements that all his consultants must sign. But he recently learned of a consulting firm that was nearly destroyed by a court challenge to such a document. Now, he’s wondering how well-written his agreements really are…..

These three typical situations illustrate how non-competition agreements are becoming more prevalent in the workplace – and how vital it is to have the professional advice of an attorney to draft or review these documents.

Whether you are an employer in need of an agreement or an employee being asked to sign an agreement, the attorneys at the Zamary Law Firm can help you navigate through this complicated area of business law.

Non-compete agreements are agreements between an employer and an employee (or independent contractor) in which the employee agrees not to “compete” with the employer for a certain period of time, in a certain market, selling a certain product or products, or in a certain industry.

Non-compete agreements affect all industries and fields from consulting to medical practices and frequently impact businesses that rely on their sales people or employees to establish relationships with the customer on behalf of the employer.

“To the customer, the sales person is the company,” Founding Attorney George Zamary said. “The sales person is, in effect, compensated for doing this. When that person leaves, the company needs time to re-establish the relationship with a new sales person. Otherwise, the ex-sales person can easily take the customer to a competitor who has done nothing and paid nothing to secure the customer.”

“The agreements provide needed protection to our business clients to avoid unfair competition and protect their customer base,” added Mr. Zamary, who practices in the areas of business litigation, employment law, contracts and construction law.

Non-competition agreements are often needed for businesses with significant trade secrets or important intellectual property which often includes items such as customer lists, formulas, patents, trademarks and more.  Sound legal advice can be a benefit to those on both sides of the issue.

“We can advise our employer clients on carefully crafted language, which is more likely to be upheld in court than an overly broad non-compete,” he said. “Also, we advise employees on the pros and cons of entering into a non-compete, perhaps negotiating those terms, as well as what might happen when the relationship ends and the employer seeks to enforce a non-compete in court.”

The early stages of any legal process are critical. If you would like to speak with a member of our business law group about your company’s needs, we invite you to contact our Cincinnati, Ohio, office to arrange an initial consultation. Our lawyer will evaluate your legal position in light of your personal goals, and counsel you on alternatives.

Related Areas:  Commercial litigation

When our clients are involved in business and commercial disputes, lawyers from our civil litigation practice work closely with our business law group to protect the clients’ interests in areas including: health care litigation, contract disputes, and construction litigation