Noncompete agreements protect employers from losing valuable trade secrets and employees.
Here's how to make sure your agreement will hold up in court. By signing a noncompete agreement, an employee promises not to work for a direct competitor for a specified period of time after he leaves the company. Here's the lowdown on whether it's worth asking your employees to sign one, and how to create an agreement that will pass muster with a judge. How Noncompete Agreements Protect Your Business Obviously, a noncompete agreement can keep your business from losing employees, but it can also protect your company's confidential information. If one of your employees has access to sensitive business information or trade secrets, you'll obviously want to prevent this employee from disclosing this information to your competitors.