When a company buys the assets of another, can those assets include the right to enforce a non-compete agreement?
Previously, we have written about the Top Ten Things to do When an Employee Resigns to Join a Competitor and the Top Ten Mistakes Made by Departing Employees. Given the favorable feedback, we continue with the following Top Ten Things to Consider When Drafting a Non-Compete Agreement.
For companies with employees in multiple jurisdictions, creating a single non-compete agreement for use by employees throughout the country can be tempting, yet potentially ineffective. The following issues may vary from state to state and should be considered when determining how many agreements a company needs and how to maximize the prospect for enforcement.
Every day businesses across the country merge and consolidate their operations. If your business acquires or merges with another business, consider these issues when drafting the agreements to make sure that you will get the benefit of your bargain.
Good mergers can turn bad without attention to employee retention -- be sure to carefully analyze the existence and enforcability of non-competes signed by key employees early in the process.