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Common non-compete agreement mistakes that employers make

On Behalf of | Jan 20, 2022 | Uncategorized

Many Miami area businesses have grown and created a competitive formula to make them successful. An employer may worry that an employee will one day leave the company and start their own business using the methods the company developed. An employer may want to have an employee sign a non-compete agreement before beginning work as a means to protect their methods and prevent the future risk of problems.

There are many common mistakes that are made with a non-compete agreement. Understanding these mistakes can help a company avoid them.

  1. One-size-fits-all approach: A non-compete agreement needs to fit the business. It shouldn’t be a replica of another business’s agreement as your company’s needs may be different. The agreement needs to have specific considerations for your business’ circumstances.
  2. Restrictions on competition are too long or the geographic region is too wide: A court can refuse to enforce a non-compete agreement if it is for too long of a time. In most cases, an enforceable amount of time is 18 months. The geographic scope also needs to be reasonable.
  3. Agreement not following the law: A non-compete agreement needs to follow the law and the laws frequently change. The non-compete agreement needs to be updated periodically to make sure they are continuing to meet your company’s needs and that they are enforceable.
  4. Not having an agreement: Many businesses make the mistake of not having a non-compete agreement. Some businesses may even just trust their employees and believe they don’t need one. Business owners need to know how important they are in securing their business, protecting their customers and protecting them from unfair competition.

An attorney who specializes in employment law can help a company draft a noncompete agreement that ensures a company’s goals are protected now and into the future.