Employment Law

Non-Compete Contracts in the Construction Industry Part 2

In this three-part article, Sarasota construction attorneys with Cotney Construction Law are discussing why contractors and construction companies should consider featuring a non-compete contract to protect their businesses’ best interests. In the first part, we explained what a non-compete was. In this section, a Sarasota construction attorney will discuss several potential missteps a contractor can make with their non-compete if they fail to partner with an experienced construction attorney to draft these contracts.

Define the Specifics

Many non-compete contracts are ineffective because they are simply too broad. When attorneys draft non-competes for business owners, they understand the laws related to trade secrets and can clearly define what exactly the company considers confidential information. Moreover, they can explain what the impact would be if the former employee were to share this information with their new employer.

When drafting a non-compete, you want to avoid broad strokes. For example, if the contract simply states that the employee cannot work for a competitor, this argument may be difficult to hold up in court. Instead, a lawyer can define the specific assets that (if shared) would impact the construction business.

What are Trade Secrets?

Employers want to protect sensitive information involving their business operations, clients, pricing, marketing plans, and plans for the future. In past articles, we discussed trade secrets and the lengths a company must go to in order to protect these valuable assets from being stolen. It’s important that the information is in fact confidential and efforts have been made to protect this information.

Another reason to have a lawyer draft your non-compete agreement is that they will understand what potential restrictions must be considered when you create this policy. For example, many employers can get carried away with the language in their non-compete and place unrealistic restrictions on their employees. For example, if a non-compete agreement attempts to prohibit an employee from joining a competitor in their market for 10 years or longer, the employer’s non-compete is unlawful, meaning it’s not an enforceable contract.

If you are interested in learning more about non-compete contracts, please read the next part of our article.

If you would like to speak with one of our Sarasota construction lawyers, please contact us today.

 

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.