Employers frequently require employees to enter into non-compete agreements, non-disclosure agreements and/or non-solicitation agreements. Unfortunately, employees often sign these agreements without understanding the restrictions’ scope or the differences between the three types of agreements. Keith Clouse, a Dallas employment lawyer, explains the differences:
• Non-compete agreement—the employee agrees that he will not engage in certain employment within a certain geographic area for a certain period of time after the employer and employee separate.
• Non-solicitation agreement—the employee agrees not to solicit the company’s clients and/or its employees.
• Non-disclosure agreement (or confidentiality agreement)—the employee agrees not to disclose a company’s trade secrets or confidential information.
Mr. Clouse recommends that employees contact an employment law attorney when faced with a non-compete, non-disclosure or non-solicitation agreement. An attorney may be able to negotiate better terms for the employee. Likewise, if an employee is bound by a non-compete, non-disclosure or non-solicitation agreement and wishes to leave his employer, the employee should speak with an attorney prior to acting. An employment law attorney may be able to re-negotiate and/or modify the existing agreement or propose a solution whereby the employee pays the employer for the right to terminate the contract.
If you would like to speak to an employment law attorney regarding a non-solicitation, non-disclosure or non-compete agreement, contact the employment lawyers at Clouse Dunn LLP at [email protected].
