It is not uncommon for employers to include Non-Solicitation and non-competition clauses (also known as “non-competes”) in their employment contracts. These clauses, sometimes referred to as restrictive covenants, are intended to restrict where employees can work if and when they leave a company, and are also intended to limit the type of activities those employees can engage in following their departure. Many employers also include confidentiality agreements to protect trade secrets and confidential proprietary information from disclosure to competitors.
If you are an employer or an employee dealing with an issue stemming from a restrictive covenant or confidentiality agreement, you should seek advice from a knowledgeable employment lawyer as soon as possible. These are complex matters that often require urgent action on very short notice.
At Duncan, Linton LLP, our employment lawyers have reviewed, drafted, defended, and challenged restrictive covenants and confidentiality agreements for both employers and employees across a wide range of industries. As the oldest independent law firm in Waterloo, we have the know-how and capacity to help our clients protect their interests.
Non-Competition Agreements
Non-competition agreements, or “non-competes”, generally mandate that departing employees cannot work for a business or start a business that is similar to that of the employer they are leaving. Non-competes are hard to enforce, and any employer wishing to do so must convince a court that including one in an employment contract is necessary in order to protect that employer’s interests. However, where such clauses are enforced, they can be very powerful and restrictive.
Non-Solicitation Agreements
A Non-Solicitation agreement restricts a departing employee from approaching or seeking the business of clients of their former employer. These agreements are generally more commonly enforced than are non-competes, as long as they are clearly drafted and reasonable.
Confidentiality Agreements
A confidentiality agreement, also known as “non-disclosure agreement” restricts the disclosure of confidential information beyond what is permitted under the agreement. Non-disclosure agreements are generally used by employers to preserve the confidentiality of any specialized know-how, technical information, business ideas, trade secrets, or proprietary information that gives the employer a competitive advantage in the marketplace.
Non-Competition, Non-Solicitation, and Confidentiality Agreements for Employers
Employers who seek to include non-competition agreements, Non-Solicitation agreements, or confidentiality agreements in their employment contracts should obtain legal advice from an employment lawyer with significant experience with restrictive covenants and non-disclosure agreements. Obtaining legal advice will increase the chances that a restrictive covenant will be enforced, and can mitigate risk to safeguard an employer’s business.
Where an employer seeks to hire an employee subject to a restrictive covenant or non-disclosure agreement, an employment lawyer can assess potential liabilities and advise on how best to move forward.
Non-Competition, Non-Solicitation, and Confidentiality Agreements for Employees
Employees that are subject to restrictive covenants or non-disclosure agreements, those who are thinking of signing an employment contract containing such agreements, or those who have been accused of breaching a Non-Solicitation agreement, non-compete, or confidentiality agreement should seek knowledgeable legal advice from an employment lawyer.
Contact Duncan, Linton LLP for Trusted & Knowledgeable Advice on Non-Solicitation, Non-Competition Agreements and Non-Disclosure Agreements
At Duncan, Linton LLP in Waterloo we have been advising employers and employees for over 160 years. The lawyers in our Employment Law Group have the requisite knowledge and experience to help protect your workplace rights. Call us at (519) 886-3340 or contact us online for a consultation