Pros & Cons Of Non-Compete Agreements

YoungUpstarts

Non-compete agreements can be an effective tool to protect these assets. Under the right circumstances and when properly drafted and implemented, non-compete agreements are enforceable in Florida. Non-compete agreements must be limited in time and geographic scope.

Primary Problems with Enforcing Non-Compete Agreements

YoungUpstarts

Businesses often require employees to sign non-compete agreements to protect their business interests. However, just because an employee has signed a non-compete agreement does not make the agreement valid under the law. Non-Compete Time Period.

Competing Against Non-Competes

Inc Startups

5000 CEO says it''s time for non-compete clauses to go. That is why I am a firm believer that we need to take collective action--within both the public and private sectors--and, once and for all, universally eliminate non-compete clauses. What Are Non-Competes?

It's All About Talent (part 2) - Eliminating Non-Competes

Seeing Both Sides

For the last few years, many leaders in the Massachusetts innovation community have been arguing that non-compete agreements should be eliminated. Many studies have shown that non-compete agreements reduce R&D investment and stifle innovation.

Your Non-Competes Aren't Saving Your Business, They are Destroying Lives

Inc Startups

Non-competes for salespeople and executives? For everyone else? HR/Benefits

The Case Against Non-Compete Agreements

Inc Startups

Thus you require employees to sign non-compete agreements so you can protect your trade secrets and your talent pool. I would think non-competes would be even more necessary in a business climate where the average length of employment is pretty short.

Non-Compete Agreements: Bad for Business?

Inc Startups

Rob Stevens, vice president of sales and marketing at GrabCAD, writes in Xconomy how non-compete agreements--contracts that keep employees from leaving your company to work with competitors--are bad for business. Some states, like California, do not bother with enforcing non-competes.

Does You Really Need a Non-Compete?

Inc Startups

Up this week: How to handle an employee who won't agree to a non-compete. Dear Jeff, I'm in the process of hiring a new employee and he says he will refuse to sign our standard non-compete agreement. So a non-compete makes sense.

Employee Non-Compete Agreements Come Under Fire in New York

Inc Startups

Employees seen as paying the price for the advantages an employer gains

Help Ban Non-Competes In Massachusetts

Altgate

Schrödinger’s Start-Up — Why VCs Don’t Sign NDAs or Non-Compete Agreements

Austin Startup

Every so often, I get an email from an entrepreneur that starts something like this: “By reading further, you agree to the terms of our non-disclosure and non-compete agreement” My immediate reaction is to delete these emails with prejudice.

The Business Case Against Asking Employees to Sign a Non-Compete Agreement

Inc Startups

Non-compete agreements may be on the rise, but they''re not the best way to protect your business--for many reasons

MA: Lets Nix The Non-Compete Here So We Can Compete Better Everywhere

OnStartups

The Boston Globe reported this morning that Governor Deval Patrick will propose today a sweeping legislation to make it easier for workers in technology, life sciences, and other industries to move from job to job by banning the non-compete agreements companies use to prevent employees from jumping to rivals. There''s no evidence that abolishing non-competes has hurt them — quite the contrary. Here''s the irony: Non-competes do limit competition.

Thinking About a Non-Compete Agreement with Your Co-Founder? Then Find a Different Co-Founder

Inc Startups

I do not need an NDA with someone I trust, and conversely, if I thought I needed an NDA to coerce silence, I would be really careful about what I shared. Startup

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Georgia Non Compete Act Faces First Constitutional Challenge

Force of Good: a blog by Lance Weatherby

While MMM makes it clear that the alert is not legal advice it is also clear they feel companies need to wait before creating new more restrictive non-compete agreements. Not too long ago John Yates and Morris, Manning & Martin launched MMM Tech Law. It's nice and they have a quickly growing MMM Tech Law LinkedIn group with over 1,200 members to go along with it. The group is a who's who of the Atlanta tech scene.

Massachusetts Has An Innovative Approach To Immigration Reform

Feld Thoughts

First, he’s proposing to ban non-competition agreements. Even though I often say that was 11 years and 364 days too many for my “non-big city, non-east coast” personality, Boston still has a sweet spot in my heart. The Massachusetts non-competition situation has always been stupid. In 2009, my partners and I at Foundry Group joined a coalition of VCs to try to eliminate non-competition agreements in MA.

18th Centurey British Textile Industry and Non-Competes

Immersive Web

Immersive Web Home About 18th Centurey British Textile Industry and Non-Competes In another chapter of “There is Nothing New Under the Sun”, we find a close comparison between the attempt to control information for economic superiority and the economic impact of free flowing information. Employment non-competes will end up like Britain’s — shackles that fail in the end.

What about previous company non-competes?

Berkonomics

What is the rule about those pesky non-compete agreements signed upon discharge or sale of the previous company? The good news is that if you were not a significant (usually 5% or more) selling shareholder of a previous company, many states specifically exempt non-compete agreements signed between companies and their employees or minority shareholders. Entrepreneurs tend to remain in the business arena they came from.

Watch out for the gray areas in non-competes.

Berkonomics

Certainly the buyer’s asset purchase documents included a non-compete clause, usually valid for two years from the date of the closing. Separate confidentiality from non-compete, and obey the confidentiality clauses. The non-compete agreement does expire when stated. Some clever buyers try to slip in an unlimited non-compete, and some courts have upheld this. Does the non-compete start anew upon the employee’s departure?

Thoughts on Winner-Take-All Businesses

Startup Economy

Though his blog makes a case for why you need to be in Silicon Valley, that got me think about the non-compete agreement prevalent in MA. With the non-compete in place, employees can oly jump over ship to unrelated industry and are forced to forego the relevant experience built over time. If they were in MA, non-compete clause would've required them to work on something else that they cannot capitalize on previous experience.

How to Protect Your Top Talent Against Poaching

Inc Startups

The age of non-compete agreements is coming to an end. Here are better ways to make sure you don't lose top employees

Signing a Noncompete Agreement? Read This First

Inc Startups

38 percent of workers--from executives to wage staff--have been asked to sign a non-compete agreement. Here's what you need to know if you're ever asked to sign one

Jimmy John’s Serves Up a Lesson on How Not to Treat Your Employees

Inc Startups

Have you ever considered that the person who made your sandwich is bound by a non-compete clause that''s stricter than your senior vice president''s clause

Georgia Amendment One

Force of Good: a blog by Lance Weatherby

It's really a restraint of employee movement amendment via non-compete contracts that are currently not enforceable in Georgia. It is not what its supporters are telling you. Courtesy of Peach Pundit.

Protect Your Startup From The 5 Most Common Employment Law Risks

Early Growth Financial Services

Restrictive covenants — Employers often use non compete and non solicitation clauses to retain employees. While non competes are not … Continue reading → Legal Why worry about employment law risks when you have enough things to focus on: building your team, getting traction, and lining up funding? Well, as the adage goes, “an ounce of prevention is worth a pound of cure.”

Georgians Should Vote No

Force of Good: a blog by Lance Weatherby

The proposed constitutional amendment will shackle employees to businesses, and strangle the present rights of employees to go out and work for competitors or start new competing businesses. You’d never know it by reading the ballot question, but the proposed constitutional amendment relates to “non-compete agreements.” Employers may already force non-compete agreements on employees -- as long as the agreements are reasonably limited in time, geography and job description.

Ethics and Morals

A VC : Venture Capital and Technology

There was no NDA or non-compete between the parties involved so it is not clear that anything illegal transpired here. At the end of the Berlin talk I posted yesterday, there was a question about ethics. It was directed at startups and how they build a culture of ethical behavior. But ethics and morals is an issue that extends beyond startups. It is an issue for all businesses and business people. The Gotham Gal recently told me a story about one of her portfolio companies.

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7 Reasons To Turn The Enemy Into A Strategic Partner

Startup Professionals Musings

Always start with a formal proposal, limited in scope to a specific common objective or technology, for a limited amount of time, bounded by a two-way non-disclosure statement. Every startup has a core competency which should not be shared. Expand core competency and solidify strengths.

DoubleClickers Don’t Worry!

Texas Startup Blog

Valleywag recently reported that Doubleclickers got screwed by Google when they asked them to sign non-competes and then terminated them a week later. First, I am not a lawyer and I don't play one on TV. Do no evil, eh? Anyway, Valleywag reported that these

Non-competition Agreements in Massachusetts

VC Ready Blog

Yesterday VCRLG attended the Boston Bar Association’s “Freedom to Compete?” symposium on the current debate in the Massachusetts’ legislature about limiting or prohibiting the use of employee non-competition agreements in Massachusetts. William Brownsberger (who was on the panel) and Lori Ehrlich, that would prohibit non-competes in some employment relationships and otherwise limit when non-competes could be used and what restrictions could be enforced.

5 Startup Legal Shortcuts That Can Be Expensive

Startup Professionals Musings

Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.

Key Contracts Every Business Must Use

YoungUpstarts

Whether a business is contemplating entering into a partnership, hiring a service provider or in the process of selling itself, a non-disclosure agreement should be utilized when information is shared with third parties. by Tej Prakash, co-founder of ShouldiSign.com.

4 Things You Need to Know Today

Inc Startups

Goodbye, Non-competes? Massachusetts Governor Deval Patrick proposed legislation to eliminate non-compete agreements in his state. A roundup of the day''s news curated by the Inc. editorial team to help you and your business succeed.

Five Legal Pitfalls That Sink Many Good Startups

Startup Professionals Musings

Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.

Protecting Your Business Idea

YoungUpstarts

Anytime you decide to bring in someone who does not have a stake in your business idea you should have them sign a binding Non Disclosure Agreement or NDA before you tell them or show them a thing. Non-compete Agreements Before and After Hiring.

Five Legal Traps Every Entrepreneur Should Avoid

Startup Professionals Musings

Then they realize that they have talked to many people without signing non-disclosure statements, precluding a patent, or someone else has now beat them to the filing docket. Founders ignore non-compete clauses from former employers.

Startups Need Mergers And Acquisitions For Growth

Startup Professionals Musings

Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies. Rather than push non-compete agreements on your superstars, it’s more productive to create incentive systems and creative ways for them to work more independently, just for you.

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10 Steps To Finding The Right Startup Co-Founder

Startup Professionals Musings

Use caution to avoid employer conflicts of interest and non-compete clauses. A common challenge faced by every entrepreneur is that they don’t have the bandwidth, interest or skills to do everything that is required to build their startup.

Kicked Out of Your Own Company: What To Do

Inc Startups

Assume that your separation agreement will have a non-compete clause, and make sure you understand the terms of it. The non-compete should related to your company’s business specifically, and should not prohibit you from other types of ventures.

When is a Startup Non-Disclosure Really Required?

Startup Professionals Musings

Entrepreneurs often get the advice from their lawyers and friends to always get a Non-Disclosure Agreements (NDA or CDA) signed before disclosing anything about their new venture. I recommend a mutual non-disclosure, with a non-compete clause, for protection in both directions.

Is Amendment One Good For Business?

Force of Good: a blog by Lance Weatherby

Benjamin Fink of Berman Fink Van Horn has a very well thought out and footnoted article over on Georgia Non-Compete and Trade Secret News (who knew there was such a thing) titled. Georgia’s New Non-Compete Statute: Is This-legislation Good For Business In Georgia? The new legislation also runs contrary to a trend taking hold in other states with which Georgia would like to compete.

10 Keys To Finding That Perfect-Fit Business Partner

Startup Professionals Musings

Use caution to avoid employer conflicts of interest and non-compete clauses. In my experience, the initial idea for a new product usually comes from a single entrepreneur, but the implementation plan for a new business requires a team, or at least a co-founder. The reason is that any one person rarely has the bandwidth, interest, or skills to manage all the tasks required to build a business. Thus I find that two heads are usually better than one in a startup.

Accelerate Startup Growth by Looking Outside the Box

Startup Professionals Musings

Use external sourcing to fill in the non-critical gaps. Don’t use alliances for core competencies. Rather than push non-compete agreements on your superstars, it’s more productive to create incentive systems and creative ways for them to work more independently, just for you.

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