Roberts Wooten & Zimmer LLC
636-481-4088 636-797-2693

Not complying with noncompete agreement leads to business dispute

After creating a business and working hard to gain success, many Missouri company owners want to do their best to ensure that their businesses do not face unnecessary setbacks. In some cases, employers may require certain contracts, such as non-compete agreements, in order to ensure that employees do not have the opportunity to help competitors get ahead. Of course, these agreements are not always foolproof as employees may violate the terms, causing a business dispute.

When it comes to addressing such a dispute, litigation may be necessary. It was recently reported that a company in another state has filed a lawsuit against a former employee for violating a non-compete agreement. The company, which provides commercial hygiene supplies to various industries, claims that the man created a company that directly competes with their business.

The non-compete agreement indicated that an employee could not work for a competitor for a year after ending employment with the company. However, the man had apparently created his company while still working for the first company. For this reason, the lawsuit claims that the man violated the terms of the agreement and is now costing the company approximately $100,000 in revenue a year.

It is not unusual for companies to find themselves involved in a business dispute now and then. In many cases, these conflicts need legal attention to properly address. If Missouri business owners believe that they are facing conflicts that need such attention, they may want to gain more information on their options for protecting their companies' best interests.

Source: startribune.com, "Ecolab sues former employee over non-compete agreement", April 24, 2018

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