In today’s work environment, everyone has an opinion on non-compete clauses. Some belief it to serve as a great way for employers to protect the vital information and valuable players who make their business run, while others criticize them as unfair and exploitative.
When structured in a poor way, non-compete clauses and agreements can do a lot of harm. Thus, it is crucial for business owners to have the ability to create fair non-compete clauses that protect interests and employees at the same time.
Building a fair non-compete clause
Forbes takes a look at the top ways to structure fair and effective non-compete clauses. When building a non-compete clause that could realistically get enforced, a business owner should always:
- Avoid causing employees any hardships due to restrictions presented in the clause
- Only cover the business’ interests
- Avoid harming the general public in any way
First, avoid causing hardships to employees. If they leave or end up fired, they should not overly struggle to find a new job because of limitations from a non-compete clause. The time and geographic limitations imposed should not be too restrictive, as the point of a non-compete clause is to lower chances of competitors getting sensitive business information and that alone.
Remembering the main purpose
The main purpose of these clauses serves to protect the business’ interests, so at the very base, a clause needs to have sufficient provisions to do that. But the clauses should not overstep bounds any further, instead of striking a balance between preventing unfair competition while staying reasonable to employees.
Finally, do not do anything considered harmful to the public at large. Certain fields, such as medical fields, would consider any form of information-stifling to be detrimental to the populace at large. Any non-compete clause should avoid this.