As a business owner, it is important that you consult a legal professional at various stages in your business operation. If you have been considering the implementation of a non-compete agreement for your employees, that's a key time when you should consult an attorney first. If you're unsure how an attorney can help with something like this, it's in your best interest to explore the basic legal concerns about non-compete agreements for business owners.

Can All Of Your Employees Sign Non-Compete Agreements?

As a business owner, it is within your rights to ask all of your employees to sign non-compete agreements, but that doesn't mean that those agreements will be enforceable for every employee. Depending on your state, non-compete agreements might only be applicable to certain positions, with many hourly workers exempt from enforcement. The goal of a non-compete agreement is to preserve your company's skilled labor, and you should use this accordingly.

Who Should Sign A Non-Compete Agreement?

A legal professional can help you evaluate the roles within your business to determine which positions are best protected with a non-compete agreement, including those in product design and development, specialized skills, and positions that you invest in educationally. In fact, you can include most positions where you've invested in the employee's education to advance their skills in the role as well as those intended to protect a company's proprietary secrets.

Is Your Non-Compete Agreement Specific Enough?

If you want to be sure that your non-compete agreement is binding, it must be precise. You need to detail the positions prohibited as part of the non-compete agreement, the duration of time post-separation that the agreement is effective, and the radius in which competitors are considered as part of the agreement. 

Remember that a non-compete isn't intended to keep employees from working for anyone, but instead from those direct competitors in your area who could target your existing market share. With online business operations becoming global, it's important that you talk with a business law attorney about what specifics are enforceable to protect your interests. While most non-compete agreements must be limited to specific geographic regions, some can be limited to certain types of roles instead. Just make sure that your state enforces those agreements first.

The more you understand the fundamentals of a non-compete agreement, the easier it is to protect your company's interests and its investment in the workforce. Make sure you know how you can protect your company with the right contractual agreements.

For more information about law services, contact a local law firm.