Covenants Not to Compete
Trade Secret & Nondisclosure Agreements
As a veteran Austin business lawyer and CPA, I have helped many businesses through stages and processes including the following:
- Business start-up
- Entity selection
- Asset Purchases
- Venture capital investments
- Shareholder agreements
Each business has unique needs for legal protections. I counsel businesses on legal and tax consequences of their choices. Many businesses ask for my advice and assistance to craft and implement restrictive provisions in agreements with employees, such as covenants not to compete.
I welcome the opportunity to discuss your business’s goals and needs, including covenants not to compete, covenants not to solicit employees, trade secret disclosure restrictions, and other matters to be implemented with employees, through employment contracts and other agreements. Contact Austin, Texas business lawyer, John McDuff, to schedule an appointment.
What is a Covenant Not to Compete?
A covenant not to compete is just that, a promise by an employee that when he leaves your employ, he will not compete against you. There are many terms that must be considered for such an agreement. First, you must give the employee something, to receive a covenant in return. The area in which competition is not allowed, and the time period in which competition is not allowed, have to be set with the relevant statutes in mind. Covenants not to compete are usually agreed incident to an employment contract being signed, or the purchase and sale of a business. Of course, a binding covenant can be reached in other types of agreements. Needless to say, one must get a solid employment contract, as well as a solid covenant not to compete within it.
What is a Covenant Not to Solicit?
Frequently, a covenant not to compete will also be joined by a promise that after the employee leaves, for a period of time the person who has left will not solicit any of the company’s employees to change jobs.
What is a Covenant Not to Disclose Trade Secrets?
Also, trade secret provisions may be joined to the covenant not to compete. The basic provision is that the employee, in performing his job, may have access to matters that the company views as confidential, and the disclosure of which may cost the company profits. Typical examples of trade secrets are technological innovations, customer lists, pricing lists, and financial statements. The promise made by the employee is not to disclose the trade secrets to anyone, after leaving the employ of the company.
Contact an Experienced Business Attorney in Austin
Discuss your business’s needs with me, on the implementation of protective instruments such as covenants not to compete, covenants not to solicit, and covenants not to disclose. As a veteran business law attorney, I am prepared to help you protect and grow your business. contact me, John McDuff, by phone at 512.457.1177 or e-mail me to schedule an appointment.