If you’re an employer and have invested in an employee for a long time, the last thing you want to happen is have that worker jump to a competitor.

After all, that employee has good insider knowledge and could help the competition swipe away some of your customers, employees, market share – and even trade secrets.

Usually, a non-competition agreement or non-compete clause in an employment agreement would take care of such problems by barring the former employee from working for competitors for a certain period of time. Yet there’s a big problem with that when it comes to California. The Golden State considers non-competition agreements/non-compete clauses unenforceable in just about every instance, according to a 2008 ruling by the state supreme court. Other states have some restrictions, but California is one of the first to take such a hardline stance on the matter.

So what is an employer to do in order to safeguard his or her business? Experts say the next best thing is to address this issue from the get-go by requiring a well-worded non-solicitation agreement be signed at the time of hiring. A non-solicitation agreement, in conjunction with a confidentiality agreement, will go a long way in protecting your bottom line and market share.

This step will restrict an employee from soliciting customers while they are with your company and, once they leave, from using trade secrets to solicit customers.

“It can be difficult to prove solicitation,” said Anthony Spotora, a Los Angeles-based business lawyer, “but a non-solicitation agreement can be your best offense in California when seeking to defend your business and your bottom line.”

It is important to note that the trade secrets component is the only enforceable component of a non-solicitation agreement. The same 2008 Supreme Court decision that found non-compete agreements to be unenforceable also found that non-solicitation agreements are only enforceable when they are limited to trade secrets, or intellectual property. This distinction must be clear in the employee agreement.

Trade secrets can encompass a wide range of information such as customer lists, technical information and computer programs, software, techniques and licensing.

As per California’s 2008 Edwards vs. Arthur Andersen decision affecting non-solicitation and non-compete contracts, this extends to employers both in and out of state.

To learn more, visit https://www.spotoralaw.com/

There are a lot of challenges and unknowns when getting a new business venture off the ground. Am I ready for this launch? How long will it take me to recoup my capital? When will the customers begin rolling in?

If you are operating the business with a partner, one of the things that can save you a lot of headaches later on is putting together a partnership agreement. A partnership agreement clearly outlines each partner’s responsibilities and rights, therefore preventing disagreements in the future. It is not uncommon for disagreements between partners to sink new business ventures, destroy friendships and cause long, drawn-out legal battles.

A partnership agreement can be tailored to each venture’s specification, yet they all should include a section detailing each partner’s individual job duties. Consider life without a partnership agreement: If each party is under the impression that the other person is handling a particular task and it is not completed, the new business venture can crash before it has a chance to get off the ground.

“This legal document can minimize the number of risks that new business ventures face, creating a better chance for success,” said Anthony Spotora, a Los Angeles-based business and entertainment lawyer. “Included in the agreement are specifics on what authority each partner has when it comes to borrowing or lending money, buying supplies, executing lease agreements or entering other types of legal contracts.”

Perhaps certain business transactions can only take place with the consent of both partners. Perhaps Person A exclusively handles the purchasing of supplies while Person B exclusively handles the hiring of new employees. Whatever the arrangement, it is important to make the rules of the game clear to all.

The partnership agreement might also want to include procedures if one partner wants to leave or passes on, how profits will be shared, how an additional partner would be added, management responsibilities, how each partner contributes cash flow, management restrictions and other decision-making protocol.

Each state has a uniform business partnership law, but a partnership agreement can override this law to suit your particular needs. A partnership agreement is a small investment in time and resources that can often mean the difference between success and failure.

There is a lot to consider when putting together a partnership agreement so it is best to consult an attorney with experience in such matters.

To learn more, visit https://www.spotoralaw.com/