Protecting Your Business' Infofmation
On behalf of Grand Rapids Litigation Attorneys Blog posted in Business Litigation on Monday, February 27, 2012
Non-compete agreements and clauses are a useful tool to help a business protect itself. Often employees, officers and even third-parties are permitted access to confidential and proprietary information. Without a non-compete agreement in place, not only could these individuals use this information to compete with your business after their business relationship with it has been severed but in some cases they can use this information to compete with you while still in a business relationship with you.
Recently Patrick K. Gill returned to the West Michigan banking world after an 18-month hiatus. The reason for the prolonged vacation: Gill had a non-compete agreement with his former employer, OAK Financial. During that 18 months Gill was not allowed to assist a competitor of OAK that was with a certain geographic area. Once that 18 months had ran its course, Gill was permitted to take his current position president and CEO of Grand River Bank.
If Gill had violated this agreement, he and his current employer could have been liable to his former employer for damages. Many times businesses and owners are too trusting. Believing in a time when business was done by a handshake and business ethics were golden rules. In today's competitive economy, not only are new businesses looking for an edge but your former employees are looking for that edge too. Not only to businesses need to protect themselves but they need to speak with someone that is qualified to know the law regarding these types of agreements.
Source: "Banker eager to get back in the game after being sidelined by non-compete agreement" by Jim Harger
