GoFaxer Blog

Non-compete contracts have become very familiar in today’s business world. Companies use them to protect their interest and restrict ex-workers from capitalizing on contacts or information obtained during their employment. This seems reasonable. Why would you as an employer want to put time and money into training an employee just to have them take off with your clients and expertise? It seems that a non-compete contract can prevent that from happening.

In reality though, they can turn out to be more of a downfall. Lets use the sales business as an example. Most talented salespeople are turned off by non-compete contracts. It puts them at a disadvantage to have to look for work in a completely different area if this job happens not to work out. Therefore, you are more than likely not going to get the top notch salespeople into your business.

There is also the issue of practicality. So you hired a top notch salesperson, and after a year of working for you they’ve decided to move on. What’s next? Are you going to follow your ex-salesperson around to ensure they are abiding by the terms of their non-compete contract? And if you do, and you find that they are in fact not abiding by their contract, do you really want to go through the hassle of taking them for court for it? In some cases even if you can provide proof that they went against the terms of your contract, courts have had a history of not honoring non-compete contracts. Some courts see them as restricting a person from their right to make a living.

Instead of a non-compete contract, many companies are turning to 300% contracts. These contracts state that if an employee decides to terminate employment with you, and a client decides they want to go with that employee, the employee is then liable for 300% annual earnings lost from losing that client. This seems to work well for employers because it is easier to calculate a figure, and courts don’t seem to have a problem honoring them. In addition, employees seem to be more accepting of them, so you can still get the top notch employees you desire!

You won’t need a non-compete contract to benefit from the terrific services of GoFaxer! Contact GoFaxer today to learn about how online faxing can benefit your business.