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What makes a non-compete agreement fair?

All companies have their secrets, from the most successful corporate entity to the smallest startup. Standing out from the competition and having a unique formula are what help businesses thrive. Like other Indiana business owners, you want to protect the confidential information that keeps your company in the running – whether it be a list of loyal clientele you worked hard to cultivate or a top-secret recipe.

The immediate answer may be to include a non-compete agreement in your employment contract. However, it is important to understand that many people believe non-compete clauses are unfair and impede competition and employment prospects. It can also be difficult to enforce the terms of an overly strict non-compete agreement.

This does not mean that you cannot include any sort of non-compete wording in your employment contract, assures Monster. The key is ensuring such a clause protects your business interests while not unfairly restricting your employees. For example, say you own a company that develops video game apps for smartphones. Your non-compete clause may restrict former employees from developing games for other companies within five miles of yours for three to five years, or from starting their own company under the same conditions. You should also include wording that restricts employees from sharing trade secrets unique to your company and from actively recruiting your own clients.

Each element of your business and employment contracts requires careful planning to be fair to the parties involved. Since this may be a complex undertaking, this information should not replace the advice of a lawyer.

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Katzman & Katzman, P.C.

Katzman & Katzman, P.C.
3500 Depauw Blvd., Suite 2100
Indianapolis, IN 46268

Toll Free: 866-557-8841
Phone: 317-973-0881
Fax: 317-872-5769
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