Sales Strategy

Read This Before You Draft—Or Sign—A Non-Compete Agreement August 03, 2016 (0 comments)

New York, NY—Non-compete agreements aren’t just for top executives anymore. They’re showing up at every level of every industry from the CEO in the corner office to the popular instructor at the corner yoga studio.

They’re especially common in sales positions where a salesperson’s relationship with clients is a huge part of his or her value to the employer. A top salesperson that decamps for a competitor can cost a small business like a jeweler a huge amount of money if clients follow. But not surprisingly, employees tend to balk at signing anything that could hinder their future career or force them out of the job market even for a little while.

An article on Investopedia.com says non-compete agreements can work if both parties focus the agreement on what really matters. Candidates and existing employees alike who are asked to sign a non-compete should try to negotiate key points (such as length of time or extent of geography it covers) rather than offer a knee-jerk refusal to sign. Companies, meanwhile, should make sure the agreement focuses on what really needs to be protected (such as client lists or proprietary business secrets), rather than ask candidates or employees to sign a blanket contract that a court may overturn as too broad and limiting of the employee’s ability to find another job.

More information, such as courts’ typical rulings and when to call in an attorney, can be found in the article.

Top image: doziermillerlaw.com