Where to Draw the Line – Use Caution with Non-competes and Confidentiality Agreements
June 20, 2008
Two areas of employment law often go hand in hand – confidentiality agreements and covenants not to compete (also known as confidentiality agreements.) They are found in many employment contracts with employees and may also be used in at will relationships between employers and employees. At the beginning stages of employment, an employer should consider whether to bind the new employee to a confidentiality or non-compete agreement. At the termination stage of employment, the employer should review the employee’s file to ensure that there are fully executed copies of these agreements.
Confidentiality agreements focus on the unauthorized dissemination of confidential information by current and former employees. Generally, companies have a legitimate business interest in protecting important, confidential information from landing in the hands of their competitors or other businesses that could benefit from the information. This could be a customer list, sales data or technical knowledge. Sometimes, the data the employer seeks to protect…
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by: Kevin V. Maltby, Esq.
June 9, 2008