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Non compete agreements

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Tiny Software Company creates software security applications intended to protect point of sale terminals in retail stores from being hacked. While Tiny Software hires talented and experienced employees, it provides a significant amount of training for those employees. There are two other companies that produce similar software and that compete with Tiny Software, and there are often rumors of other companies that are being formed to compete with Tiny Software.

Should Tiny Software have its employees sign non compete agreements? Can Tiny Software require that current employees sign on compete agreements, or will Tiny Software only be able to require that new employees sign non compete agreements? What should the terms of the non compete agreements be so that they will be enforceable?

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This solution discusses non compete agreements.

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The software company has a legal right to protect their relationships with their customers and their confidential information, but this must be done in proportion to the rights of their former employees to continue earning a living. Therefore, the software company should have its employees sign non-compete agreements but must ensure that these agreements be balanced with the rights and interests of employees taken into ...

Solution provided by:
Raushaun Rigsby, MSc
Education
  • Associates of Arts , Lone Star Community College
  • Bachelor of Science , Sam Houston State University
  • Masters of Science, Kaplan University
  • Masters of Science , Kaplan University
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