Protecting Your Trade Secrets, Part 2
Learn how to invest your IRA or 401k into a franchise penalty-free. ($50k min)
Other ways to protect your secrets include document labeling and restricting access to materials. Conducting exit interviews is also a good idea. You can query employees about their plans and remind them of their continuing obligations.
Finally, you can put some teeth in your nondisclosure and noncompetition agreements with the following:
- An ideas-and-inventions clause obligates employees to tell you about any ideas and inventions related to your business that they developed while working for you.
- A liquidated damages clause establishes the amount of money departing employees must pay you if they take your customers while a noncompete or nonsolicitation restriction is in force. Similarly, you can penalize departing employees by having them forfeit specific postemployment benefits if they breach their nondisclosure or noncompete agreements. Contact your lawyer for more details.
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