Starting a new job can be exciting and nerve-wracking at the same time. In many cases, companies require new employees to sign an employment contract. This legal document includes information on salary, paid time off, job duties, benefits, and more. A contract may also include a “non-compete” clause. Essentially, this means that a worker cannot leave the company and go work for a competitor. These clauses protect businesses from employees taking specific information, skills, and client data and using it against them while working at another company. Similarly, a non-solicitation clause prevents a worker from contacting other workers at the same company or customers of the employer in an attempt to lure them to a competitor. It is imperative that an experienced business law attorney reviews these contracts in order to protect an employee’s rights.
What Does “Reasonable in Scope” Mean?
A non-compete clause usually contains a restriction on time and geographic location, meaning if an employee resigns, he or she cannot work for a competing company within a certain period of time after leaving his or her present company. Likewise, the contract can include a mileage radius in which a former worker may not go to seek employment if he or she quits.
A non-solicitation clause may include provisions addressing situations in which an employee leaves to work for a competing firm or starts a similar business on his or her own. It can also have a stipulation that an employee cannot ask coworkers to leave with him or her when departing the company to start a competing enterprise together.
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