Knowledge Management Through Non-Competes and Non-Disclosures
There are many businesses that may require a contract be signed by employees, many employees may not read the contract completely, same as many people do not read user agreements before they agree to them. Without reading and agreement how could one know what they are agreeing to. There can be serious consequences for violating these agreements. The purpose of this paper is to educate current college students on the legitimization and concerns of Non-Compete Agreements (NCAs) and Non-Disclosure Agreements (NDAs)
Knowledge Management
While Knowledge Management (KM) is important in any business however, there is no real agreed upon definition. KM is a concept that includes the
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Before someone can argue pros and cons they must be able to understand them, although some have been touched on previously there are many more. The biggest issue is that pros and cons are widely debated. According to the research conducted by Mayfield and Cordell (2016) “78.9% [of 551 surveyed respondents] indicated they felt a non-compete clause or agreement did not protect their interests as an employee” (p. 85). The study by Mayfield and Cordell also states that only 22% had at some previous time signed a NCA (p. 85). Covenants like these are so widely used and practiced that there are laws that govern how they can be used and the enforceability of them. According to Mayfield and Cordell (2016) “courts have striven to protect a person’s right to secure employment, while also pursuing protection for a business” (p. …show more content…
There are many people that have written on legal concerns however most importantly is the research that goes into these agreements. As noted by Davis, Reicin, and Warren in 2015, items like geographical restrictions are favorable in some states and other states will only accept customer restrictions (How Far Should Your Geographic Restrictions Reach section, para. 1). However difficult creating any type of restrictive agreement it may be harder to enforce it because each state has some type of choice-of-law principle. This is important especially if a business operates in multiple states. According to Davis et al., while referring to Cardoni v. Prosperity Bank, noted that even though the bank headquarters was in Texas, the Texas court utilized Oklahoma laws because the bank in question was located in Oklahoma (What Jurisdiction’s Laws Will Apply section, paras 5-6). Thing like this can make this covenants extremely difficult to ensure
In Passalacqua, the appeal court held that the appellee could not have provided specialized training to the appellants because based on the appellant’s testimony; their training came from reviewing a manual, and a day of “on the job” training. Passalacqua v. Naviant, Inc., 844 So. 2d 792 (Fla. Dist. Ct. App. 2003). In this case, the appellants quit three weeks after signing the non-compete agreement and started their own business; their former employer sought injunctive relief on the basis that they had legitimate business interests to protect, one being specialized training about the customer database. Id. at 793. The court favored the appellant’s testimony showing that that the appellee’s did not provide specialized training; therefore, they ruled that the non-compete agreement could not be enforced on the appellants. Id. at 794.
Employers may have the need of non-competition agreements for a number of reasons such as protection of trade secrets or goodwill. However, courts commonly rule against non-competition agreements that unreasonably limit a former employee's right to earn a living. Therefore, when made the matter of a legal argument, non-competition agreements are strictly examined in the court system. In order to be enforceable, non-competition agreements must at least fulfill three key elements. First non-competition agreements must usually be supported by valid consideration where the employee receives something of value in exchange for the promise to refrain from disclosing trade secrets and engaging in competition. Second, there needs to be a legitimate
An employment agreement is basically an agreement between an employee and an employer outlining not only the obligations but also the rights of each party. In this text, I discuss the employment agreement of Microsoft Corporation, a company that largely concerns itself with the development as well as manufacture and licensure of a variety of computing products and services. In so doing, I will amongst other things highlight a specific clause in the company's employment contract that I deem improper.
The factors that go into determining whether a given agreement is legally enforceable vary by state. In Florida, for example, the agreement may be invalid if the skill in question was learned elsewhere. In Ohio, the court may modify the agreement if it is found to be too broad in scope. And in California, most non-compete agreements are invalid, except under very specific circumstances.
Employers often argue that a covenant not to compete can be ancillary to an agreement not to disclose confidential information. The court in the Light decision cited such an agreement, given in exchange for the employer actually providing the information, as an example of an "otherwise enforceable agreement." However, since then, several cases have raised concerns about how the courts will construe these types of agreements in the future.
No compete clauses are not pervasive in public or private industry but they often exist in situations and with people where trade secrets and other sensitive information is potentially at risk. Employers do so to protect themselves but many states and territories around the world either highly restrict them or outright ban them from even being implemented due to it ostensibly being unfair or punitive to the employee. The author of this paper is asked to focus on a fictional situation involving a non-compete clause and is asked to answer several different questions. The elements of a non-compete clause that must be present are to be explained as well as a number of related concepts including offer, acceptance, capacity and so on. The author is asked whether common law or UCC applies to non-compete agreements and what part(s) of the agreement would make the aforementioned fictitious agreement unenforceable.
This non-disclosure/non-compete agreement is entered into in reference to the Film Editing Agreement that was entered into on March 7, 2012 by Charlie Chaplin (Chaplin), film editor (Chaplin) and Victor Price, Vice President of Hypothetical Films (Hypothetical Films) in his capacity as Vice President. It covers services for the film with the working title Underground Lives (Lives), a film about the lives of illegal immigrants in Texas. The consideration for this contract is the underlying agreement between Chaplin and Hypothetical Films.
Hence, even if Ms. Lauren’s actions may be in breach of a non-competition clause, her employer must provide evidence demonstrating the alleged breach to succeed before the courts. But in a situation like in Ms. Laurence case, where the non-compete was properly drafted and implemented, a court could award damages against Ms. Laurence for any actual losses suffered by her employer.
As a result, it will assist in the identification and address the evolving needs of customers thus increasing clients’ satisfaction and attracting new ones into the company (Collins & Kehoe, 2017, p.309). In fact, knowledge management is a logical way to manage knowledge through the processes of acquiring, organizing, and communicating
A non-compete agreement is a document that establishes an understanding between your company and an employee regarding expected practices when an employee is leaving your agency to work elsewhere. Taking the time to decide whether or not you wish to include a non-compete clause in your employee contracts influences your HR policies and procedures. Consider the following when making decisions about non-compete agreements.
Effective knowledge management, using more collective and systematic processes, will also reduce our tendency to ‘repeat the same mistakes’. This is, again, extremely costly and inefficient. Effective knowledge management, therefore, can dramatically improve quality of products and/or services.
In my opinion, yes, reasonable covenants not to compete can protect business. A covenant not to compete is a contract between an employer and an employee whereby the employee agrees not to work for a competitor or become a competitor for a certain period of time after leaving the employ of the employer.
This could ensure the protection of the company’s trade secrets and confidential information such as customer lists so that an employee does not take personal advantage of that in order to make profit or find a better paying job using the employer’s information. Additionally, having non-compete agreements would incentivize employees to remain at a company which would therefore incentive the employer to invest more money in them for things such as training which could therefore increase their salary trajectory. Although some parts of a non-compete agreement could be too extreme, the employee always has the choices to either not sign the agreement, try to negotiate some unrealistic expectations, or take it to court because if the employee makes a compelling argument, courts generally take their
One of the most important points that have to be avoided are agreements among companies that would limit competition such as cartels, the setting of a fix price or the sharing of consumers or markets in order
According to the Chicago School point of view, an incumbent firm, faced with buyers whose interest is to promote entry and competition, would have to pay buyers more for the inclusion of exclusionary provisions than it could possibly gain from exclusion. Therefore exclusivity restrictions must be based on efficiency reasons and are thus unproblematic. This view has been often criticized and economic theory has identified several conditions under which exclusionary contracts may be harmful to competition.