AOL employee restricted by non-compete agreement

An employee's departure from his or her job could create employment restrictions in the future. In an effort to protect a business' intellectual property and other business-related secrets, many companies utilize non-compete contracts.

Generally, a non-compete agreement is a promise by an employee not to compete with his or her employer for a specific period of time. The contract creates safeguards for a section of time after an employee leaves employment with a particular employer. Such agreements limit what a former employee may practice and where he or she may do so. The agreements are often integrated into an employment contract; yet, in some states, the law requires that they be documented in a separate agreement.

According to reports, AOL's head of advertising has resigned after receiving an employment offer to take a sales opportunity at Yahoo. AllThingsDigital reports that the former head of sales will be the head of Yahoo's Americas sales group.

However, there are some limitations and restrictions on the sales representative's departure. The man has a non-compete agreement with AOL. This means that he will be required by law to wait at least one year before he can officially commence employment with Yahoo. This is not surprising, as the two companies are Internet-technology rivals.

If you would like to protect certain aspects of your business, a non-compete agreement may be one way to do this. It is important to safeguard the intellectual property of your company. To learn more about these employment provisions, speak with a qualified business law attorney in your area.

Source: NBC News, "Head of ad sales quits AOL after Yahoo job offer - report," Reuters, April 11, 2013

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