Legal Issues: Restrictive Covenants
Restrictive covenants can help protect your business, but they must be reasonable and are not always enforceable.Allyson Avila It is not uncommon for an employee to leave a company and join a competitor's business or launch their own shop in the same community. As a practice owner in the highly competitive arena of aesthetic medicine, it is understandable that you would want to protect your business against loss of patients, particularly when that loss may come at the hands of an employee who has benefited from hours of training and years of building professional and patient contacts in your facility.
To minimize the risk, you can require staff members to sign restrictive covenant agreements. These include non-compete, non-solicitation and/or non-disclosure agreements. But are such agreements enforceable? That depends: Enforceability varies from state to state. Understanding the laws of your jurisdiction and the details that must be included in such agreements is the first step in drafting an enforceable...
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