Whether your employees workdirectly with customers or in the service bay, they may come into contact withsensitive, competitive information that they could potentially use to establisha competing business nearby.
Non-compete agreements mayhelp your business safeguard trade secrets and other information, but only ifthey hold up in court.
Some things to consider whencreating non-compete agreements include:
• Length and scope: Theagreement generally will be considered enforceable only if it’s"reasonable" in duration and geographic scope. Agreements thatrestrict former employees from working for a competitor for up to one year areusually considered reasonable.
• Fairness: Provideemployees with a copy of the agreement to review before they start working, andgive them a chance to consult legal counsel and ask questions. Although not alegal prerequisite for enforcement, these steps make an employer seem moresympathetic and reasonable and increase probability of success in litigation.
• Timing: Establish a non-competeagreement before an employee begins working. In some states, waiting just a fewweeks could hinder the enforceability of the agreement. For a non-competeagreement to be executed after an employee starts, the employer must offeradditional consideration – such as a raise or benefit increase – in exchangefor the restrictions.
– Source: Tire ReviewBusiness Toolbox
