It has become more common for employers to require new employees to sign employment agreements when they are hired. These agreements are used primarily to protect company secrets and to discourage “employee poaching” by competitors.

Confidentiality agreements are used to prevent an employee from sharing information about the company that  the employee learns during a job interview or during the course of employment. The confidentiality agreement (often called a nondisclosure agreement) should specify the information that the employee may not disseminate or share. The agreement should also clearly state the period of time the agreement is valid and the period of confidentiality.

In a non-compete agreement, the employee signs a contract agreeing to not work for a competitor company or to start a competing business for a certain time period after the employment ends. Non-compete agreements must clearly state the period of time the employee must refrain from competition and must also clearly define the types of businesses that are considered competitors, both in terms of industry and geographic location.

Employment Agreements

It has become more common for employers to require new employees to sign employment agreements when they are hired. These agreements are used primarily to protect company secrets and to discourage “employee poaching” by competitors.

Confidentiality agreements are used to prevent an employee from sharing information about the company that  the employee learns during a job interview or during the course of employment. The confidentiality agreement (often called a nondisclosure agreement) should specify the information that the employee may not disseminate or share. The agreement should also clearly state the period of time the agreement is valid and the period of confidentiality.

In a non-compete agreement, the employee signs a contract agreeing to not work for a competitor company or to start a competing business for a certain time period after the employment ends. Non-compete agreements must clearly state the period of time the employee must refrain from competition and must also clearly define the types of businesses that are considered competitors, both in terms of industry and geographic location.