Non-Compete & Non-Solicitation Agreements
Help from Our Chicago Employment Lawyers
Both non-compete agreements and non-solicitation agreements, if drafted
properly, can be advantageous to businesses looking to protect customer
data. Non-compete agreements prohibit a former employee from working for
a competitor. Non-solicitation agreements allow an employee to work for
a competitor, but prevent former employees from soliciting clients with
whom they worked by virtue of the previous employment arrangement.
While similar in intent, these documents offer different benefits for business
owners and can have different repercussions on employees. You should
contact a Chicago employment lawyer from The Prinz Law Firm to learn more before you sign or draft anything.
What Is a Non-Compete Agreement?
Non-compete agreements are a means for businesses to protect their investment
in client development. Companies invest substantial amounts of money in
creating processes, training employees, and marketing to prospective clients.
Non-compete agreements are not intended to be a means of excluding an individual
from continuing to make a living while working in the same industry as
a former employer.
Our lawyers help you with these agreements by:
- Advising executives as to the specific obligations they are undertaking
- Helping executives negotiate their way to a better severance package
- Helping businesses prepare a standard non-compete agreement that protects
the company’s interests and remains enforceable
Non-compete agreements must be carefully drafted to remain enforceable.
Geographic scope, duration, and industry application must all be limited
to accommodate a legitimate business interest of the employer.
Professionals should be wary about signing a non-compete agreement without
fully understanding its terms and application. An employee should know
that non-compete agreements limit their future opportunity to obtain other
employment within their industry.
How can a Non-Solicitation Agreement Help Me?
Non-solicitation agreements are another way for businesses to protect their
investment in marketing and client development. Non-solicitation agreements
are meant to protect a company’s proprietary information about its
customers and employees.
Employees asked to sign a non-solicitation should be wary that these agreements
can often be wide in scope and can effectively put an employee out of
the market. At the same time, employers should be wary that a non-solicitation
agreement that is too broad could be deemed invalid by a court of law.
Employers should have an agreement drafted that protects the business
without negating the employee’s chance to work within the industry.
Regardless of whether you are the employee or employer, consult with a
Chicago employment attorney at 312.212.4450 to schedule your