As an employer, you are accountable your workers and customers alike. To help your business thrive, you need to protect the information that makes your product or service unique. If a worker leaves your company, how can you be sure their new employer won’t benefit from your experience? Having a lawyer craft a non-compete agreement as part of your employment contract minimizes the risk of anyone divulging proprietary information and affecting your company’s value.

What Is a Non-Compete Agreement?

Non-compete agreements are contracts between workers and their employers that prevent an individual from working for a direct competitor for a certain amount of time. They are often included in employment contracts to help protect vital details about a company after an employee, independent contractor, or consultant has moved on to another job. These details can include proprietary information like product formulations and pricing, development and marketing strategies, client and customer lists, and even salary information.

These agreements need to be reviewed by lawyers to ensure the terms are reasonable and do not prevent the employee, contractor, or consultant from finding meaningful work in their field and geographic area. The state of Missouri places these restrictions on non-compete clauses because the government recognizes the inherent conflict between the employer’s need to be profitable and worker’s need to earn a living and use their skills. The state typically does not enforce non-compete agreements that last more than two years past the worker’s final day on the job. Agreements may also be deemed unenforceable if the terms are so strict that the worker would not be able to find a new job within a reasonable geographic radius or if they did not have access to sensitive information.

How Does It Benefit Employers?

Although Missouri requires non-compete agreements to be narrowly focused on protecting vital details like trade secrets and client contact information, there are some significant benefits for employers. These agreements can help attract loyal workers who are less likely to seek employment elsewhere, meaning the time and money you spend on training new staff members are direct investments in your company’s success. Knowing your information is secure for the long-term can also help spark product and method innovation to set you apart in your field. This is especially important in emerging industries or markets in which your company may be one of only a few within a given industry. Working with a lawyer to develop a non-compete agreement puts your company on the path to growth by protecting private information and developing a highly skilled workforce.

Since Missouri’s enforcement guidelines for non-compete agreements are tightly defined, you need the right lawyer to ensure your company’s interests are protected. Woodlawn Law Offices in St. Charles County provides small business and corporate law services that range from incorporation to document preparation, so you can be confident that your business secrets will always be secure. Visit the firm online for information about their business services, and call (636) 240-6667 to schedule a consultation.