All employees should agree to refrain from any activity that could disadvantage your business in the marketplace. In particular, during the term of the employment and for a reasonable period of time, they should agree not to ask or encourage one of your employees to leave their job in your company; Recruit or hire their employees or serve your customers or prospects. You want to protect yourself from former employees who use contacts or confidential information they acquired for your company while they work to steal your business or value. Note that a staff member`s non-recruitment agreement may not be applicable in all states (as opposed to not “asking” a staff member). Under federal and national law, the employer generally owns the work created by the worker on behalf of the employer. The work of the federal recruitment doctrine provides that the employer is the author of work prepared by a worker in the course of his or her work. This can only be changed if the worker and employer execute a written agreement that says something else. Under California law, a trade secret is information that derives potential or real economic value from the fact that no one is known or known to the public who may derive economic benefits from its disclosure or exploitation; and appropriate efforts are being made to preserve its secrecy. That your employees sign a separate confidentiality agreement is proof that your company is doing everything in its power to keep your business secrets secret. If you are looking for private equity, your investors may insist on employee confidentiality agreements. This is especially the case when you run a technology company because they want to know that the confidential information and intellectual property of the company are protected.
CIIAAs should also prevent employees from doing business in competition with your company. At least, this prohibition should last for the duration of the employee`s relationship with the company. In some cases, you want the non-compete clause to exceed the employee`s time with the company by one year or more (well beyond one year may backfire, as unjustified durations may be found to be unenforceable in court). Beware that alliances not to compete are not applicable everywhere – for example, in California, they can only be enforceable in very well-defined circumstances. State law regulates these agreements and states consider non-competition obligations in different ways. As a result, you should contact the employment advisor to make sure you are using the corresponding agreement for each of your employees. A confidential information and invention agreement is an agreement between a company and its employees, contractors, consultants and business partners. It explains how to manage a company`s confidential information and intellectual property.