Des Moines Business Non-Compete Agreement Lawyer
Business Non-Compete Agreement Counsel in Des Moines
Our Des Moines, IA business non-compete agreement lawyer from the Law Group of Iowa is seasoned in helping clients with all kinds of business matters. Our team is knowledgeable in drafting and reviewing non-compete agreements that protect the best interest of our clients. Essentially, what a non-compete agreement states is that in exchange for a payment, the seller promises to not engage with similar types of business in that area for a designated period of time. The agreement may also instruct that the seller is not able to use confidential business information or share trade secrets with others.
But as your lawyer may warn, non-compete provisions have to be reasonable. We can evaluate whether an agreement is clear and straightforward so that all parties understand the agreement they are entering. Non-compete agreements usually prohibit a seller from being affiliated or working with other businesses in similar industries. What a non-compete agreement cannot do is prohibit a seller from working in other areas or with those in an unrelated Industry.
Additionally, a non-compete agreement may be limited to a geographic area (which may or may not include where the seller had done business before). The exact area and timeframe that a non-compete agreement is enforced will vary based on the business and factors of the transaction.
An Iowa Business non-compete agreement lawyer in Des Moines knows how important it is to review business-related documents before signing on the dotted line. We have seen too many times business owners, sellers, and buyers entering contracts that do not have fair expectations for all parties, which can quickly lead to confusion and disputes. We know how to help stop litigation before it begins by looking for clauses or provisions that may cause issues later on. Here are examples of mistakes that may be found in non-compete agreements:
- The agreement cannot be enforced because there was lack of consideration.
- The agreement cannot be enforced because the competition restriction timeframe is much too long.
- The agreement cannot be enforced because a “one-size-fits-all” approach was used, which hadn’t factored in nuances that apply to each party or the transaction itself.
- The agreement cannot be enforced because the competition restriction territory area has too large of a scope.
- The agreement cannot be enforced because it was not properly updated as circumstances of the business, transaction, or applicable laws changed.
What Happens When a Business Non-Compete Agreement is Violated?
When a business non-compete agreement is violated it can cause great distress and problems for companies and individuals. While some employers or companies may not bring about legal repercussions if they catch someone violating this agreement, others most likely will. Companies do not wish for their important information to be taken and used by a competitor or other enterprise. In many cases, fines and other damages are required to be paid back to the company who the person violated the order against. Some cases have also seen individuals not allowed to even gain employment with the new company that they joined. If you are dealing with someone who has violated a business non-compete agreement then reach out to the Law Group of Iowa to speak with a Des Moines, IA business non-compete agreement attorney from our firm. We have years of experience in helping clients uphold and protect their rights and information.
Protecting The Companies Vital Information and High Standards
Keeping the interests of the company secure is crucial to remaining competitive and keeping the company around for a long period of time. A great way to ensure that standards are kept and that people are not taking advantage of the company is to have a business non-compete agreement. These agreements have helped protect companies’ interests for many years. Ensuring that skilled employees don’t take vital information and use them at a competitor company is something that all companies should consider. This is also one of the main reasons that companies of all sizes reach out to a business non-compete agreement lawyer in Des Moines, IA from the Law Group of Iowa. We have helped many companies draft non-compete agreements for them to keep their information safe and their company secure.
Do Business Non-Compete Agreements Violate Employees?
It’s important that employees feel safe and secure in their jobs. They also should be treated with the utmost respect. That is why it’s especially important that a non-compete agreement is carefully laid out and doesn’t violate an employee. For a non-compete agreement to be valid it must not restrict the employee from the opportunity to earn a living for themselves and their family. The employee must also have a valid and legitimate reason for having their employees sign these types of agreements. Those reasons are generally so that an employee is unable to immediately resign from their position at some point and then go on to work for a direct competitor of that company. A court or attorney may also have to look at the agreement to ensure that the employee isn’t being violated and that the company isn’t restricting them unfairly. Reach out to a business non-compete agreement lawyer in Des Moines from Law Group of Iowa to learn more about these agreements. Our firm can also help draft these important documents and ensure that they are valid and fair for all of the parties that are involved with this important agreement.
The Law Group of Iowa
We are here to make sure that your business needs are protected, no matter what the future may hold for you. You can call on our team to assist you with legal needs, and not just business matters either. We are well-versed in personal injury law, family law, estate planning, elder law, and much more in between. A Business non-compete agreement lawyer in Des Moines, Iowa from the Law Group of Iowa is ready to take your call!
Why Does My Business Need Non-Compete and Severance Agreements?
A business non-compete agreement lawyer Des Moines IA companies trust knows that whether your business is seeking to terminate a specific employee or conducting a larger reduction in your workforce, your company needs to understand how to effectively use severance and separation agreements. Relatively minor mistakes can come back to cause you major headaches. If you have any questions about severance agreements, please contact the Law Group of Iowa.
A Terminated Employee Might Bring Legal Action
Companies have the right to control their own workforce. However, there are many reasons for why an employee may not be terminated. Employers will want to avoid facing legal action from terminated employees. Obviously, there is a risk of an adverse decision by the court if legal action is brought against a firm, but there is also the issue that facing a legal claim will lead to undesirable expenditures of both time and money. Potential claims that a terminated employee might assert include:
- Breach of their employment contract
- Breach of the employer’s good faith and fair dealing obligations
- Allegations that the termination constituted a violation of public policy
- The allegation that the termination was based on discrimination
- Unfair business practices
An Effective Severance Agreement Can Protect Your Business
A Des Moines business non-compete agreement lawyer understands that in many situations, employees have an incentive to sign a severance agreement because they can receive additional benefits. These benefits can include compensation, positive references, or assistance in finding future employment. The agreement may also include terms such as a mutual non-disparagement clause, or the protection of the company’s trade secrets.
Additionally, the agreement will typically require that the employee will agree to waive their rights to make a claim against the company. In essence, the severance agreement can help both sides avoid a dispute. However, employers must always make sure that their severance agreements are enforceable under state law. A sloppy agreement, such as one written using a standardized form, may be ruled unenforceable by courts. This can leave your company facing major issues. Some issues that have led to the non-enforceability of employment severance agreements include:
- Inadequate value being offered to the employee
- The lack of specificity regarding the waiver of claims
- A lack of clear language regarding the waiver of claims
- Overly restrictive provisions
- The employee was given inadequate time to review the agreement
Contact Our Business Law Firm for Legal Assistance
Our experienced Des Moines business non-compete agreement lawyer can review your specific situation. Your attorney can draft a cost-effective, and enforceable, severance agreement that meets all of the needs of your business. If you would like to learn more about non-compete and severance agreements, call the Law Group of Iowa to schedule a free and confidential consultation.
Iowa Business Non-Compete Agreement FAQ
Protecting your business from unfair competition requires more than just hoping employees and partners will do the right thing after leaving. Non-compete agreements prevent former employees, business partners, and contractors from using insider knowledge, relationships, and trade secrets to compete directly against you. However, Iowa courts scrutinize these agreements carefully, enforcing only those with reasonable restrictions that protect legitimate business interests without unfairly restricting someone’s ability to earn a living. At Law Group of Iowa, we draft enforceable non-compete agreements that protect your business interests while meeting Iowa’s legal standards, and we represent both employers seeking enforcement and employees challenging unreasonable restrictions.
What Makes Non-Compete Agreements Enforceable In Iowa?
Legitimate business interests including trade secrets, confidential information, and customer relationships justify restrictions. Reasonable geographic scope limits where former employees cannot compete based on your actual market areas. Time limitations typically ranging from six months to two years prevent indefinite restraints on employment. Scope of restricted activities must relate specifically to what the employee actually did for your business. Adequate consideration means employees received something of value in exchange for agreeing to restrictions. New employment requires additional consideration beyond continued employment for existing workers. Courts balance your need for protection against employees’ rights to earn livings in their chosen fields.
Why Do Courts Refuse To Enforce Some Agreements?
Overly broad geographic restrictions extending far beyond where you actually do business lack reasonableness. Excessive time periods that prevent employment for many years violate public policy favoring employment. Restrictions on activities the employee never performed for you lack legitimate purpose. Missing or inadequate consideration when agreements are signed after employment begins creates enforceability problems. Agreements protecting general skills and knowledge rather than specific confidential information fail. Restrictions that would leave employees unable to work in their professions entirely get rejected. We draft agreements within Iowa’s enforceability standards while maximizing protection for your legitimate interests.
What Should Non-Compete Agreements Include?
Clear definitions of restricted activities specify exactly what business activities are prohibited. Geographic limitations describe territories where competition is restricted using specific boundaries. Time restrictions establish how long obligations continue after employment or business relationships end. Confidential information definitions identify what specific knowledge and information require protection. Customer and client lists that employees had access to justify restrictions on solicitation. Non-solicitation provisions prevent recruiting your employees or contractors to new ventures. Severability clauses allow courts to modify unreasonable provisions rather than voiding entire agreements.
How Do Non-Compete Agreements Differ From Non-Solicitation Clauses?
Non-compete provisions broadly prohibit working for competitors or starting competing businesses within defined parameters. Non-solicitation agreements narrowly restrict contacting your customers, clients, or employees specifically. Courts enforce non-solicitation provisions more readily because they impose lesser burdens on former employees. Geographic restrictions matter less for non-solicitation since they focus on specific relationship lists. Time limitations for non-solicitation can be longer because restrictions are more targeted. Combined provisions provide layered protection addressing both competition and relationship raiding. We recommend appropriate restriction combinations based on your specific business needs and risk levels.
When Can Employers Enforce These Agreements?
Former employees who start competing businesses or join direct competitors trigger enforcement rights. Customer solicitation by departed employees violates agreements even without formal competition. Trade secret misappropriation occurs when confidential information is used for competitive advantage. Breach situations require prompt action since delays may constitute waiver of your rights. Preliminary injunctions prevent ongoing violations while lawsuits proceed to final resolution. Damages remedies compensate for losses caused by agreement breaches. We act quickly when violations occur to protect your business through injunctive relief and damage claims.
What Defenses Do Employees Raise?
Arguments that restrictions are overly broad and unreasonable challenge agreement enforceability. Claims of inadequate consideration assert they received nothing of value for signing agreements. Changed circumstances including employer breaches or job elimination may void obligations. Public policy defenses argue restrictions prevent earning livings in chosen professions. Ambiguous language creates interpretation disputes about what activities are actually prohibited. Clean hands doctrines arise when employers violated agreements or employment laws themselves. We evaluate defenses thoroughly whether representing employers seeking enforcement or employees challenging restrictions.
How Much Do Non-Compete Disputes Cost?
Litigation expenses including attorney fees, expert witnesses, and court costs accumulate quickly during enforcement actions. Preliminary injunction hearings require immediate attorney work condensed into short timeframes. Discovery including depositions and document production adds substantial costs. Business losses from employee departures and competition increase financial stakes. Settlement negotiations often resolve disputes more cost-effectively than full litigation. Attorney fee provisions in agreements may shift costs to losing parties. We provide realistic cost assessments helping clients make informed decisions about pursuing or defending enforcement actions.
What Should Employers Do To Protect Businesses?
Draft agreements before relationships begin making consideration clear and unquestionable. Tailor restrictions to each employee’s actual role, knowledge, and customer access rather than using identical language. Limit restrictions to legitimate business interests you can prove require protection. Update agreements when employees receive promotions or access to additional confidential information. Maintain confidentiality of trade secrets through proper security measures and employee training. Document customer relationships and confidential information employees access during employment. Contact us to draft enforceable agreements or review existing provisions before problems arise rather than during crisis situations.
Non-compete agreements protect businesses from unfair competition but must be carefully drafted to withstand legal challenges. A business noncompete agreement lawyer Iowa companies trust can create enforceable restrictions, negotiate reasonable terms, and litigate disputes when violations occur. We represent both employers protecting legitimate interests and employees challenging unreasonable restraints. We work on various fee arrangements depending on whether drafting agreements or handling disputes. Contact us today to discuss your non-compete needs or challenges.
