There’s no denying that the COVID-19 pandemic has led employers and enterprise house owners throughout the nation to make tough selections to terminate or lay off staff to chop prices and forestall extra losses.
it’s value noting that these layoffs have extra to do with the present financial disaster, owing to the wave of uncertainty introduced on by the coronavirus, and fewer to do with the efficiency of those staff. A few of the staff which were let go are topic to a non-compete settlement.
It goes with out saying that implementing non-compete agreements in opposition to staff which were laid off is a tough determination to make, whatever the circumstances, however the present local weather has made it even worse for employers.
On this weblog publish, we’ll check out how non-compete agreements may help employers shield themselves in opposition to the unfair use of confidential data and commerce secrets and techniques within the occasion the place their former staff find yourself working for his or her opponents.
How Do Non-Compete Agreements Work?
Restrictive covenants which can be present in employment contracts and non-competition agreements are sometimes utilized by corporations throughout many industries to guard themselves in opposition to the disclosure and use of confidential data and commerce secrets and techniques.
Because of this many employers ask their staff to signal agreements as a situation of employment that restricts them from taking part in aggressive actions for a specified time period after they’re terminated.
As a enterprise proprietor, you need to be cheap and even handed whereas using these gadgets as a result of courts universally acknowledge that these sorts of restrictive covenants are a restraint of commerce.
Although the regulation that governs the enforceability of those covenants varies from state to state, each jurisdiction requires an in depth examination of non-compete agreements and locations constraints on the extent employers can go with a purpose to stop or restrict the actions of their staff post-termination.
Components You Ought to Take into account Earlier than Implementing Non-Compete Agreements
Earlier than you may implement a non-compete or terminate an worker who’s topic to this type of employment settlement, that you must decide whether or not your organization’s non-compete is enforceable underneath state regulation. Each state has completely different, usually stringent checks which can be used to find out whether or not a non-competition settlement is enforceable or not.
Within the present local weather the place we’re seeing a major rise in worker lay-offs, courts might deem it acceptable to use guidelines of development which can be favorable to the workers and help unenforceability. Because of this it’s advisable to hunt recommendation from a professional enterprise regulation lawyer earlier than implementing a non-compete or taking authorized motion in opposition to a former worker.
The way to Shield Confidential Info and Commerce Secrets and techniques
Let’s check out some steps you may take to guard aggressive intelligence and forestall or reduce the fallout within the occasion the place a departing worker has used confidential data that you just’ve disclosed to them unfairly. For those who plan to terminate or lay off a few of your staff to guard worthwhile commerce secrets and techniques, right here’s how one can plan upfront:
1. Prohibit Their Entry to Delicate Knowledge
Earlier than terminating the worker, be sure you have management of the credentials they used to log into their accounts and have entry to the info that’s been logged by them. Instantly after their departure is efficient, you’ll want to prohibit their entry to all information and get the IT administrator to take management of all of their accounts.
2. Demand the Return of Confidential Info
Problem a written demand to them to return confidential data and commerce secrets and techniques which were disclosed to them every other employer-issued property. Remind them that they’re prohibited from retaining or utilizing any copies. If these obligations are listed within the restrictive covenant settlement, don’t neglect to reference these provisions within the written demand.
3. Perform an Investigation for Suspicious Conduct
For those who suspect them of theft or every other wrongdoing, it’s advisable to analyze and look at their actions to seek out proof that helps your suspicions. With the help of your IT crew, you may examine for any suspicious habits like copying information with delicate information, use of a private bounce drive, or something that appears uncommon or out of the strange.
4. Take Authorized Motion If Obligatory
If the investigation has offered proof of theft, that you must take acceptable motion. The least you are able to do is challenge a written demand for return of the stolen data and notifying their new employer of the wrongdoing. You want to act shortly and take authorized motion, if crucial, to verify no extra injury is completed.
Do you reside in Orlando, Miami, or Jacksonville, FL? Get in contact with Boyer Legislation Agency, PL, to study concerning the components it is best to contemplate earlier than implementing a non-compete and how one can shield worthwhile aggressive intelligence from theft.
