{"id":55354,"date":"2018-07-11t16:00:54","date_gmt":"2018-07-11t20:00:54","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=55354"},"modified":"2018-07-13t13:43:40","modified_gmt":"2018-07-13t17:43:40","slug":"why-non-compete-and-non-solicitation-covenants-matter","status":"publish","type":"post","link":"\/\/www.g005e.com\/2018\/07\/11\/why-non-compete-and-non-solicitation-covenants-matter\/","title":{"rendered":"why non-compete and non-solicitation covenants matter"},"content":{"rendered":"

\"businessman<\/a>bonus: a sample agreement.<\/strong><\/p>\n

by <\/i>marc rosenberg<\/i><\/a><\/p>\n

“non-compete” and “non-solicitation” are two terms often used interchangeably. though they are similar, there are important differences.<\/p>\n

more:<\/b> why you might want an executive committee<\/a> | how to specify managing partner duties<\/a> | when votes must be taken, what are the options?<\/a> | ownership percentage and capital accounts<\/a> | 5 key reasons to have a partner agreement<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

for the sake of brevity, we use the term \u201cnon-competes\u201d to refer to both covenants.
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\nthe two groups of personnel for purposes of non-competes are partners and staff. virtually this entire post relates to partner non-competes, which are largely enforceable in courts. the enforceability of staff non-competes has become increasingly uncertain in courts, varying wildly from state to state.<\/p>\n

requiring your staff to sign non-compete agreements as a condition of employment is a best practice even if the likelihood of enforcement in your state is questionable. human nature, especially for high-integrity people like accountants, is such that someone who signs a non-compete is less likely to violate the agreement even though its enforceability is uncertain. there are several reasons for this:<\/p>\n

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  1. staff feel a moral obligation to honor an agreement they signed.<\/li>\n
  2. most people, particularly staff at a cpa firm, have little appetite for engaging in a legal battle with their firm.<\/li>\n
  3. for most staff, only in their wildest dreams can they envision themselves leaving the firm and having the ability to take clients with them.<\/li>\n<\/ol>\n

    many firms don\u2019t require their staff to sign non-competes as a condition of employment. but mps of these firms may attend a conference or network with other mps and learn that it is a good practice. so they may embark on an initiative to get their staff to sign these documents.<\/p>\n

    be careful. these agreements will be enforceable only if the firm provides meaningful remuneration to the staff in exchange for signing the non-competes. that remuneration has to be meaningful. attorney frank saibert suggests $2,500.<\/p>\n

    why do cpa firms have non-competes?<\/h3>\n

    cpa firms have significant intangible assets:<\/p>\n