Mistakes To Avoid When Drafting Non-Compete and Non-Solicit Agreements

Employers who wish to protect their business will often draft non-compete and non-solicit agreements that implement certain restrictions on their employees after he or she leaves the job. Some of these restrictions can include sharing private and confidential information, competing against the employer, and soliciting other customers and employees. In this blog, our Chicago employment lawyer shares some common mistakes one should avoid when drafting restrictive agreements.

Overbreadth

In order to be enforceable, an agreement must be considered reasonable. If you’re drafting an agreement that is riddled with unreasonable restrictions, the court can choose not to enforce your agreement. When putting together a non-compete or non-solicit agreement, keep in mind the duration and geographic scope of the restrictions – if the restriction is too long of a timeline or too broad of a geographic scope, it is unenforceable.

Failure to Consider Future Job Changes

If the agreement involves a change in profession after it has been signed, it may be difficult to enforce.. Any type of job change can adjust certain employment aspects including compensation and the relationship between those involved.

Failure to Consider Jurisdictional Differences

This mistake is most commonly found in employers of multi-state businesses. The employer will come up with one broad non-compete or non-solicit agreement and use it for each location, even though the employment laws may vary state-to-state. If the contract meets one state’s law on restrictive agreements yet fails to meet the law of other states, it cannot be enforced.

These types of agreements are crucial in protecting your business, investment, and client development. When drafting a non-compete or non-solicit agreement, you should do so with a dedicated employment lawyer by your side. The Prinz Law Firm has the skill and experience necessary to help you when you need it most.

Let our Chicago employment attorney protect the success of your business.
Call (312) 212-4450 to learn how we can help today.