Retain an employment attorney, not your neighbor's cousin who practices family law, to help you draft any agreements related to hiring and firing, both for full-time and part-time employees. Laws vary by state, so it's extremely important that your documents reflect current local law. Although the letter below contains good wording, do not use any part of it until and unless it has been reviewed by a competent employment lawyer.
I did not need a non-compete until I fired a long-term employee and she walked off with a major account worth $100,000+. After that, I recognized that I needed to put something in writing. A friend who owned an association management company had a stiff non-compete, complete with $100,000 in liquidated damages for taking her clients. [That means the penalty is agreed to in advance of signing the contract.] I included liquidated damages in early employment contracts, but removed it later. As an agreement gets more punitive, it's harded to sign.
AGREEMENT CONCERNING TRADE SECRETS
AND COVENANT-NOT-TO-SOLICIT CAREERLAB CLIENTS
This Agreement acknowledges and reduces to writing the oral employment Agreement by and between William S. Frank (hereinafter, Consultant) and CareerLab, Inc., a Colorado Corporation, and the subsidiary and affiliated companies of CareerLab, Inc., (collectively referred to herein as CareerLab), pertaining to the confidentiality of information and establishing the ownership of information, work products, works made for hire, and other property which has been and will be acquired, used or produced by Consultant during the performance of his work duties. The Consultant is considered a member of CareerLab's executive or professional staff reporting directly to the senior management of CareerLab. In consideration of the specific recognition and understanding by Consultant of the highly competitive and confidentially sensitive nature of the business of CareerLab, and further, in consideration of the agreed-upon compensation paid to Consultant by CareerLab, Consultant and CareerLab agree as follows:
by William S. Frank
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