Texas is a state that’s full of opportunities. However, you might not feel like you have many opportunities if your employer just had you sign a non-compete agreement. There’s a lot of confusion out there about these documents. Here’s a closer look at how to understand the components of non-compete agreements.
What are non-compete agreements?
These agreements are ways for employers to stop current or former employees from working for the competition. A non-compete agreement also typically details that employees can’t reveal a former or current employer’s proprietary information or other types of company-wide secrets.
The main elements of a non-compete agreement
Unfortunately, noncompetition agreement contracts and disputes about them often go hand-in-hand. To help prevent these stressful situations, it’s smart to understand the components of a non-compete agreement before signing it.
One of the most important elements of this document involves duration. This is how long a company prohibits an employee from working with potential competitors. Some agreements might also temporarily ban an employee from working in certain parts of the world.
It’s also important for a non-compete agreement to cover scope, which details the type or types of work an employee may not perform until the contract expires. Lastly, most non-compete agreements also have a section that discusses damages. If an employer breaks the term of their signed agreement, they could have to pay their current or former employer.
To wrap things up, non-compete agreements are ways for companies to reduce or eliminate their information from getting into the wrong hands. Unfortunately, these documents are often extremely limiting for employees. Considering the length and scope of a non-compete agreement, it’s a good idea to closely look over this document before signing it.