When you have trade secrets to protect, it’s important to have all employees sign the right documentation before beginning to work in your company. Otherwise, an employee can learn your trade secrets and take the strategies you have in place for a successful business, opening up across the street.
If you are concerned with competition coming from the people you have trained, you need to have these documents in place, and discuss the realities of the documentation with all potential employees.
Protecting your trade secrets is done through a nondisclosure agreement. Once signed, this means your employee is legally prohibited from discussing your trade secrets with anyone outside of the company. In a simple example, an employee that shares a recipe with their friends for a secret sauce your business is known for, that employee is sharing trade secrets.
A noncompete agreement prevents that same employee from opening up a similar business close to you, or using your recipe for their own benefit. Protect your business and your trade secrets with the right paperwork in place – contact Garcia Reed & Ramirez LLP today.