Monday, September 17, 2012

NON-COMPETE NON-DISCLOSURE AGREEMENTS

Depending on the job, you may want to have your new employee sign a non-compete non-disclosure agreement.  Are they enforceable? Depends on the terms, depends on the state you are in, and depends on how effing stupid the judge is you get when you are trying to enforce it. HOWEVER, it is still a good idea to have one, as it increases the chances of enforcement when there is something in existence to enforce. You may be exposing the new employee to secret formulae, hard to get customer lists, marketing methods, the secret of your grandmother's egg salad recipe--something that you don't want your competitors to have. Have them sign what is called in the biz the NDA--the non-disclosure agreement.  If they turn rat, they turn judgment debtor and have to pay up and with a properly drafted agreement, they also have to shut up, or face contempt of court charges which could have them living in a gated community sans golf course--if you catch my drift. FURTHERMORE, you may be spending a ton training the new guy on the block, and you don't want him going to school on you then setting up shop on his own or with a competitor--so you need the non compete agreement.  Facing a situation like this? If you are in New York, get a hold of me and we'll talk.
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Tuesday, September 11, 2012

DO YOU NEED A PARTNER?

I have found in 31 years of practice, that even seasoned entrepreneurs are more open to bringing in a partner or a shareholder or a member, when needing a certain skill set under their control from a person who is not likely to be satisfied being an employee. I tell them all don't do it.  If you need that certain skill set, make them an independent contractor, or at worst, create a joint venture.  To offer ownership in your enterprise is to offer a whole set of legal rights you might not want to give up.  In short, instead of buying the person, lease him/her.