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What is a noncompete agreement and why are they important?

On Behalf of Clapp, Peterson, Tiemessen, Thorsness LLC | Mar 12, 2021 | Firm News |

Competition is always a concern for employers in Alaska. In order to protect themselves against workers who may abscond their organization to work for a competitor, employers in Alaska may ask employees to sign a noncompete agreement.

What is a noncompete agreement?

A noncompete agreement is a legal contract between a worker and employer, wherein the worker agrees that they will not work for a competing employer either during employment or for a certain amount of time after leaving the employer. These competitors can either have the same market or work in the same field.

How do noncompete agreements help employers?

Noncompete agreements help employers avoid competition if a worker leaves their employment. Noncompete agreements also protect the secrets and sensitive information of the employer. Some of this information may include operations, client base, formulas, pricing, future ideas, marketing and public relations.

What to include in a noncompete agreement

There are several clauses that should be included in a noncompete agreement. A noncompete agreement should include an effective date, the reason the agreement is necessary, specific dates that the worker cannot work for a competitor along with the geographic location covered by the agreement and details on how what compensation will be paid for agreeing to the noncompete agreement.

Learn more about noncompete agreements and other employment contracts

Ultimately, noncompete agreements are legal documents, and thus should be drafted by professionals. This post does not contain legal advice. Our firm’s website has more information on employment law issues that employers in Alaska may find useful.

 

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