One of the tools that companies have to protect themselves includes employee agreements and contracts. These documents can prevent people from disclosing confidential information or working with the competition in the event of a job change. When both parties comply with the terms of these contracts, there may be little cause for concern.
However, if an employee does leave one company to work for a direct competitor, for example, legal disputes can arise. In order to resolve these situations, oftentimes the case will head to court where employment contracts and new job positions will be scrutinized.
We have seen this happen in large businesses recently. Amazon has filed a lawsuit against an employee who left for Target; XPO Logistics Inc. has both filed and been named in lawsuits based on allegations of poaching employees.
These lawsuits are just some that have been filed among these types of companies: large corporations looking to gain a competitive edge in providing goods to consumers. For them, every minute counts when it comes to delivering things to the people who want them, which is why the logistics leaders at the companies are proving to be such valuable assets.
Protecting corporate strategy will often involve protecting the people who develop, challenge and facilitate better and faster ways of doing things. Not surprisingly, other companies also want to employ these same people, making the landscape a veritable mine field when it comes to keeping and attracting top performers.
Because of this, lawsuits accusing other companies of poaching or accusing employees of violating non-compete agreements are becoming quite common.
In order to avoid a lawsuit like this, business owners in Dayton can take great care with how they draw up and enforce employment contracts. Employees will also want to take steps to protect themselves by reviewing a non-compete clause before signing a contract and making sure that a new opportunity does not violate that legal agreement in place.
Whether you are an employer or an employee faced with a business contract dispute, it can be crucial that you seek qualified legal counsel.
Source: The Wall Street Journal, “Supply-Chain Lawsuits Mount Amid Drive for Logistics Talent,” Loretta Chao, March 31, 2016