The Mississippi business sector is highly competitive these days, and some markets have become smaller than they used to be, especially with the job cuts that have plagued many Mississippians over the past decade. Because industries are more specialized now, business owners are utilizing non-compete agreements much more now than they used to. Non-compete agreements protect your business’s proprietary information and trade secrets. Your company’s unique assets contribute to the equity of your company, and if those assets are shared or disseminated to others in some way, competitors may replicate your product, or seek to improve it, using your design or methodology as a footprint. Whatever industry your business focuses on (i.e., legal services, oil and gas, investments and trading, among others), fair competition is essential to the success of the industry as a whole.
What Does a Non-Compete Agreement Do?
For employees or executives with specialized knowledge or skill, employers may request that this individual sign a non-compete agreement, which limits the individual’s ability to immediately begin working for another similar company in a similar position and in the same geographical area. If a former employee is able to work for a competitor, he or she may be taking confidential and proprietary information that could threaten the company’s success. As such, non-compete agreements can be a good tool to protect your company’s goodwill and intellectual property. However, some employers have very strict non-competition clauses that are so broad that the individual may have trouble obtaining a job that even fits within his or her general career field.
When non-compete provisions are too restrictive, a Mississippi court may find those provisions to be unconscionable. A former employee must be allowed to work in the same career field in order to make a living and advance his or her career interests. It is not uncommon for employees to sign non-compete agreements that essentially sign away their right to work anywhere else remotely related to the same industry, and their right to work in the same geographical area. Even though there is supposed to be room for negotiation when parties enter into contracts, employees often feel they have no choice but to sign a non-compete agreement, no matter what the provisions are, because they want the job. If an employee refuses to sign a non-compete agreement, he or she may not land the desired job, and someone else willing to sign the non-compete agreement will get the job.
How a Business Law Attorney Can Help You
Individuals and businesses enter into agreements on a daily basis, both by words alone, often called “handshake” deals, and by written contract. While oral contracts may be held valid in a court of law, having a written contract is considered the most valid evidence of an agreement. Non-compete agreements are no different than any other contract that identifies the rights and obligations of two or more parties in furtherance of the agreement. Written contracts drafted by employers may or may not be held valid in a court of law given that a Mississippi Business Law Attorney has not reviewed the document to ensure it conforms with Mississippi law. If you are an employer and you are considering having your employees sign non-compete agreements, it is important to consult with an attorney who can help you draft an agreement that is fair and reasonable to both the employer and the employee. This will prevent many issues from arising in court if the non-compete agreement is ever the subject of a lawsuit.
Contact Turk Law Firm, PLLC Today to Schedule Your Free Consultation
Having well-written and valid contracts to protect your business and your employees is absolutely essential to the success of a business and it certainly streamlines the management of the company. Non-compete agreements provide a way to protect your business after an employee leaves so long as they are fair and reasonable under Mississippi law. At Turk Law Firm, PLLC, Lindsey McGee Turk uses her prior business experience to help her clients formulate fool-proof contracts to protect all parties involved in any particular transaction. Lindsey McGee Turk can provide your business with the legal assistance you need and deserve in Mississippi. To schedule a free consultation with Jackson, Mississippi Business Law Attorney Lindsey McGee Turk, contact Turk Law Firm, PLLC today by calling (601) 214-1471.
