preview

The Pros And Cons Of Non-Compete Agreements And Non-Disclosure Agreements

Decent Essays

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 …show more content…

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

Get Access