Boise and Nampa’s business law firm helps businesses protect their interests
Boise and Nampa’s business law firm recommend that businesses take the safer approach of having three types of agreements with each employee. These are namely: non-competition, non-disclosure, and non-solicitation agreements. Each has unique terms and conditions that every business owner should understand before making the final choice.
What are ways I can legally protect my business?
- Non-competition agreement
- Non-disclosure agreements
- Non-solicitation agreements
Non-competition agreement
Idaho law acknowledges that every business has legitimate interests that require protection. This specifically applies when the business employs someone who develops relationships with clients or learns protected information about the company.
Idaho allows employers to require their employees to sign a non-competition agreement to protect their business interests. A non-competition agreement is a contract where an employee agrees that they will not compete against the business once their employment ends. This is regardless of how it ends.
These agreements are limited in the geographical location and time frame in which they are imposed. Simply put, the agreement only covers the areas where the company is doing business.
Additionally, the period during which the non-competition will exist must be reasonable. Idaho statutes presume that 18 months or less is reasonable for this agreement. A court in Idaho is not likely to enforce a period that lasts longer than this.
Non-disclosure agreements
They are similar to the former but have some unique characteristics. They are supported by specific statutes that ban an employee from disclosing proprietary information protected by the Idaho Trade Secrets Act.
That means when an employee learns about a product, process, or other proprietary information owned by a business, they are prohibited from disclosing that information to any other person or competing business.
Unlike non-competition agreements, non-disclosure agreements are not limited in time or geographical area. An employee is simply prohibited from disclosing any proprietary or trade secret information at any time, to any person, in any location. A non-disclosure agreement lasts longer than a non-competition agreement since no defined time limit exists.
Non-solicitation agreements
It can also be imposed for a much longer period. It prohibits employees from contacting or soliciting clients belonging to the business where they were initially employed. Still, the court does not dictate to the client who and where they can do business.
Let’s put it into perspective. Suppose a previous employee decides to work for your competitor since there was no non-competition agreement. If they have signed a non-solicitation agreement, they can’t contact your current clients and attempt to entice them to the new business. Still, your client can decide to work with the new business on their own, and there is nothing illegal about it.
Work with Boise and Nampa’s business law firm
Do you have any questions about any of the above agreements? A business law attorney can provide personalized advice on how to protect your business from uncertainties. Start right by creating or reviewing your business with the help of Boise and Nampa’s best business law firm.
Jacobson & Jacobson Law Firm, since 1982, is committed to serving the Boise and Nampa, Idaho areas for your top Criminal Defense, Personal Injury, Business Law, Estate Planning, Family Law, Immigration Law, and Litigation needs. Contact us today to get started. For a free 30-minute consultation, book here: https://calendly.com/jfj-1