When it comes to Restrictive Covenants, employers are fighting to keep their company safe while employees may use them to their advantage. Keep listening to find out if the Employer or the Employee wins this battle.



Round 1: Trade Secrets



A company's trade secrets encompass a whole range of information and are one of the most valuable assets that a company can own and protect. Trade secrets are a vulnerable form of intellectual capital, so there is a big risk for the employers.




https://www.youtube.com/embed/nOmEKmdArto




Round 2: Non-Competes



Non-Competes are not legal in all states, but in those where they are, they can be a significant advantage for employers. Employees, on the other hand, in the states that are legal may find it difficult to find a new job.




https://www.youtube.com/embed/9JkCS5RJE1w




Round 3: Non-Solicitation of Clients, Suppliers & Vendors



Good employees are hard to come by and employers who have them want to keep them. Non-solicitation agreements protect you from the harm that can be caused by a former employee poaching these customers or employees to a competitor.




https://www.youtube.com/embed/5JQLfge4I4g




Round 4: Poaching



Think of service providers, engineering firms, marketing companies, staffing firms, etc. In order to prevent clients from hiring away personnel, many service contracts contain “no-poach” provisions that restrict employees from being hired by another service provider.




https://www.youtube.com/embed/WGY7DPWJ1no




Round 5: Confidentiality



A company has little to lose and much to gain by using confidentiality agreements. Confidential information plays an important role in business competitiveness and success. It is also necessary to ensure the protection of company trade secrets under state or federal laws.




https://www.youtube.com/embed/hp5MxwbxFE4




Full Podcast TranscriptThis is Legally Sound Smart Business where your hosts, Nasir Pasha and Matt Staub, cover business in the news and add their awesome legal twist. Legally Sound Smart Business is a podcast brought to you by Pasha Law PC – a law firm representing your business in California, Illinois, New York, and Texas. Here are your hosts, Nasir Pasha and Matt Staub.
NASIR: All right. Welcome! Welcome! Welcome! This is our 318th episode of Legally Sound Smart Business. It’s a big milestone. 318, of course, is very well known to be a pretty significant threshold. Once you pass that mark, you’ve made it, so we’re very happy about that.
MATT: I think that’s because my hometown area code is 317. We’ve hit that. Now, we’re above that, and we’re past all the previous parts of my life.
NASIR: That’s precisely correct. Of course, 318th episode – traditionally, we cover restrictive covenants. That’s something that’s been established for many years. And so, 318, of course, I should say restrictive covenants in general is something that everyone is interested in. It covers everything from non-competes to trade secrets to confidentiality – you name it.
Of course, at Legally Sound Smart Business, we like to take different perspectives. And so, today, we are going to split it up, Matt. One of us is going to take the employer’s perspective, and the other one is going to take the employee’s perspective. You’ll have to decide who makes the better argument – if it is an argument, I guess. But we haven’t decided which side to take yet.
MATT: Yes, we have to flip a coin, right?
NASIR: That’s what I have here.