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« What kind of a word is "Gruntled"? | Main | Pretexting: a lawyer word for lying »

28 September 2006

Ten mistakes employers make when using noncompetes

1. Making every employee — from the CEO to the mailroom guy — sign a noncompete.
2. Giving an existing employee a new noncompete without giving him or her something else in exchange for it.
3. Using a noncompete to protect anything other than trade secrets, confidential business information, and customer goodwill.
4. Misunderstanding what the heck "goodwill" is. (Hint: it's not your brand image; it's the customer relationships your employee is paid to maintain.)
5. Trying to use a noncompete in California.
6. Using noncompete enforcement as a strategy to scare employees out of leaving your company.
7. Failing to update a noncompete when the employee's job substantially changes.
8. Hoping that a court will scale back (but otherwise enforce) your overbroad noncompete.
9. Waiting too long to go to court to enforce a breached noncompete.
10. Trying to use a noncompete to protect against ordinary competition (as opposed to unfair competition).

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