KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Non-compete in employment agreements February 7, 2023 ********************** Non-compete in employment agreements ********************** Ken, I have always avoided non-compete because they are hard (maybe impossible) to enforce, can make recruiting more difficult, and are unfair to the employee. Rather, I have focused on non-solicitation of both employees and customers. This is less controversial and frankly much more of a concern. Best, Miles ************************ Response *********************** You are correct that non-compete provisions in employment agreements are not easy to enforce, but that’s not a good reason for not having an Employment Agreement with restrictive provisions. Certain conduct by employees is simply not acceptable and to varying degrees detrimental to your business. For example, * you don’t want employees leaving and encouraging other employees to leave too * you don’t want employees using your confidential and proprietary business information and records for their benefit or the benefit of your competitor * simply put, you don’t want your employee doing anything that hurts your business in a significant way You are also correct that there are different restrictions and they are treated differently and enforced differently. * can’t compete while working for company * can’t take confidential papers * can’t solicit customers * can’t solicit referral sources and vendors * can’t encourage other employees to leave * can’t disparage the company on social media * can’t work for competitors Some of the above may be enforced in a very limited way or not at all. One of the advantages of using K&K’s Standard Employment agreement is that all Standard Form Agreements contain an arbitration provision that permits quick, efficient and inexpensive dispute resolution. Currently arbitration provisions are permitted in employment contracts. That means that K&K can communicate with an ex-employee within a day of you asking us to, and start an arbitration proceeding within days. Having to go to court could take weeks to just get the process started. If you don’t have K&K’s Employment Contract, get it and be sure to have all employees sign it. While you’re at it, get or update your contracts with Kirschenbaum Contracts™. ************************ STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ************************* THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily. https://www.kirschenbaumesq.com/page/alarm-exchange ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
