You have most likely had experience with employment contracts whenever youve started a new job. These documents generally outline the employees responsibilities to the company. The contract usually covers wages, hours and a job description. Depending on the job, detailed explanations of car expenses, incentive plans, stock options and health benefits might also appear.
Many employment contracts will also include a confidentiality agreement in which the employee promises not to share trade secrets or information about the company with any third party. Companies such as Coca-Cola use trade secret practices to keep their recipes from competitors. Violation of a confidentiality agreement is taken seriously, and violation might result in termination.
A new employee might also be required to sign a work for hire agreement as part of his employment contracts. This is a document stating that the company owns the copyright to any material created by the employee for use by the company. Internet companies who wish to retain the copyright to all the material on their site often use the work for hire doctrine.
Employment Contracts Containing Covenants Not to Compete
Employment contracts might include covenants not to compete placing limitations on the employees ability to work for a competitor for some time after ending employment. Companies do this in order to protect intellectual properties, trade secrets and customer lists. California, North Dakota and Colorado do not always recognize covenants not to compete; however, a well-drafted document with limited restrictions may stand up in court.
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