Fall Magazine - Page 47

Pricewaterhouse Coopers ( PwC ) survey suggests The Great Resignation is not over yet . The recent survey forecasts that 20 % of the global workforce will resign in 2022 . With this massive global reshuffling , Noncompete and Non-Solicitation Agreements have come front and center . And , like the Great Resignation , these will be center stage for the next year or more . between an business and worker who will have access to information that business would not generally make accessible to the public . In exchange for some benefit - the job , wages , training , access to the information , or even bonus requirements in some states - the worker agrees not utilize the company ’ s sensitive information , trade secrets and client information in unfair competition . Since it can be difficult to define every potential example of “ unfair competition ,” Noncompete Agreements usually specify a time period during which employers will not work for competitor in a specific geographic region .

Non-solicitation Agreements are not as closely scrutinized by the Courts . Employers are given more leeway in prohibiting a worker from poaching other workers or customers . This is because the Courts ’ concern about workers ’ ability to earn a living simply does not apply to Non-Solicitation Agreements .
Noncompete and Non-Solicitation Agreements have become very popular over the last decade as a means of protecting businesses and employers from unfair competition . Governed by state law , these agreements limit a worker ’ s ability to obtain information or contacts from one employer then unfairly use the information or contacts to benefit a competitor . To be clear , most interpretation of the governing laws says business owners may not use Noncompete Agreements to eliminate all competition . A worker has the right to engage in business that competes with a former employer . More fundamentally , a worker has the right to leave a job but still continue to work , without having to change professions or relocate .
Reduced to the lowest common denominator , then , Non-Compete Agreements are written contracts
An important distinction is that Noncompete Agreements are generally used in the context of an employer-employee relationship . Non-solicitation agreements , on the other hand , make sense for use both with employees and independent contractors . True independent contractors are generally engaged in a trade that is not central to a company ’ s business , so they would not and should not be considered competitors . For example , a plumber and painter provide very different services from a last-mile carrier , and are free to work for carriers who are in direct competition with each other . Using the same plumber does not unduly or unfairly disadvantage either company and there is no reason for the plumber to sign a Noncompete Agreement . Perhaps , in some cases , the painter or plumber must sign a Confidentiality Agreement or Nondisclosure Agreement to protect sensitive informafall 2022 customized logistics & delivery Magazine 47