Author: businesslawyerwood

Non Disclosure Agreements In The Modern Business World

The face of modern work has changed rapidly over the last several decades. The world has largely changed from analog systems and hardware, to a strong focus on software. Even the look of careers has had substantial changes.

How do these changes affect businessmen and businesswomen as they navigate the world of modern industry? And how do they affect the ever common non disclosure agreement?

Career Changes
Years ago, it was considered common place, and desirable to find a solid job, and to stick with until one retired. Often times, young men and women would start work at an entry level position, and after twenty to forty years on the job, they would retire from a mid-level management position.

Those days are gone though. Many companies now place emphasis on bringing in management members from outside the company, valuing a college degree over the on-the-job experience that their workers have. This means a hire turnover of employees on both sides of the fence. Entry level workers who are passed over for promotions, or who have a desire to climb the corporate ladder, begin to seek employment at other companies.

Also, those employees brought into mid-level positions have very little knowledge of the working of the company, and the job position that they fill. This means that more employees get into a job, and later find aspects of it that they did not anticipate.

This series of rapid fire exchanges have led to a new trend where employees are sought who actually have a variety of experience in their background. Employers want workers who can bring a variety to the work force, and who can show that they are flexible.

This turnover can cause problems though. For those who are in cutting edge, multi-faceted corporations, the lines of which companies are competitors becomes very fuzzy. It can be difficult to mitigate who you can you and cannot work for, based on your current non disclosure agreements.

Software, Not Hardware
Since much of the modern industrial world has such a strong focus on software, the non disclosure agreement reaches further than it ever has. Information considered “proprietary information” can extend much further than it used.

Things as simple as how a company manages their email, to possible changes to software coming down the line, open employees to a greater risk of breaking their agreement easier than ever before. Also, as companies continue to expand and grow, at a more rapid and diverse rate than ever before, it is far easier for employees to cross the lines of their non disclosure agreement.

Clearly, great care is needed when navigating the modern job market. Commitments to potential employers, cannot outweigh those made to current or previous allies.

The Principles Of Small Business Law

If you are the owner, or the prospective owner of a small business, you are going to have to understand and abide by how small business law pertains to you. The very first item to be considered is the structure of your business. Your decision here can play a very important part in how the business is operated and how it reports its profits and losses. It can be set up as a sole proprietorship or as a limited liability company (LLC), which is usually preferred, or as a regular C corporation.

Any business agreements between owners should be handled by an attorney as well. These agreements can define duties and responsibilities. There may be stock agreements that will need to be drawn up to bring order to that area of the company. Sales agreements for sales people, non-compete contracts, and employment agreements are also items that will need to be in writing.

If any buildings are to be purchased or leased, an attorney will need to be consulted to advise the owner in this area as well. A legal error here could be very costly and devastating to a small business. There may be zoning laws that would come into play in the purchase of a property, and they may not come into play until years later when the business decides to make a change or addition to the property.

There may be local laws that pertain to advertising and marketing that would cause problems, unless fully looked into from a legal standpoint. Hiring and firing of employees may come under the jurisdiction local labor laws, and having an attorney that understands small business law in this area can be very important in being certain that proper procedures are followed. A Dallas business lawyer can weave through the fine prints  to make sure your business is following what is stipulated in local laws.

One area of small business law that every business owner needs to be sure is taken care of is the collection and the payment of any local and state sales taxes, if applicable. If you have an online business of any kind, there is more and more emphasis in this area for the collection of sales taxes, and you will need to be kept up-to-date in this area.

If you provide employee benefits, you will need to comply with ERISA, a federal law that protects employees in this area. If you manufacture anything, the OSHA regulations monitors the safety and health of your employees, and you will also have to be aware of any environmental issues you may be causing.

In summary, being in business today requires the business owner to be on top of a great many things that legally can help or hurt, and with the help of a good attorney, it can be very difficult to navigate.

Are Non Compete Agreements Worth Signing?

Are non compete agreements worth signing? That is not an easy question to answer as it usually depends on various factors.

Signing a non compete agreement is not something that should be taken lightly. Many employers try to pass non compete agreements off as a standard practice and when questioned they will usually play down the importance of them.

If you are asked to sign a non compete agreement you should take the necessary time to weigh the potential risks with the potential benefits. Start by reading carefully exactly what is involved in the document that you are asked to sign.

Not all non compete agreements are equal. Some are very reasonable and most people would not have any problems with signing them. Other non compete agreements, however, would definitely not be in your best interest to sign, as they could cause major complications for you in the future.

It is important for you to try and understand the employers point of view. There are obvious reasons that a company would want to opt for non compete agreements. Most companies dedicate a lot of time, energy, and money into training new employees. They obviously would not want to put all of that into an employee just to loose him to the competition. That is not to mention the risk that an employee could learn their “trade secrets” only to turn around and teach them to the competition.

On the other hand there is no shortage of ambitious businesses out there that will design non compete agreements in an unreasonable way. Such agreements may only be in their interests and could really mess up an employee whose circumstances make him decide to leave the company.

Before you decide to sign an agreement you should ask yourself the following questions: Does the agreement just protect trade secrets or is it there more involved? How large is the geographical area that is involved? How long must you wait in order to be able to work in the same sector again?

If you can live with the answers to these questions it would probably be better for you to sign the agreement and start your new job. If the agreement makes you anxious, however, you may want to try speaking with your potential employer.

You may find that he is agreeable to making an amendment in the agreement in order to make it more reasonable. On the other hand he may be suspicious of your concerns and decide not to give you the job.

In conclusion, non compete agreements should not be taken lightly, however, they are not always a negative thing. For example, non compete agreements in Texas may be an advantage for your business if you discuss this with a reputable lawyer.Take the time to understand and weigh all that is involved before you decide whether or not to sign.

The Effects of Business Law on Companies and Individuals

Business law is often referred to as mercantile or commercial law, and governs many of the business transactions and dealings that happened between commercial industries and individuals. Typically, business law will fall into two specific areas. These include commercial entity regulations such as partnerships, company laws, and bankruptcy. The other area involves commercial transaction regulations through contracts.

Business laws are essential to many companies in their efforts to perform legal transactions. It is often based on legal fundamentals including personal responsibility, and liability. Nearly every statutory rule in business law is designed to protect the investor, consumer, and creditor.

Sole Proprietors

Business law uses an effective tool for creating and regulating legal business entities. This could include a sole proprietor, who bears all responsibilities and risks of operating a business on their own, along with taking profits. The laws are designed to help limit liability.

Partnerships

In designing a partnership, business law is used to define how to share profits and manage the company. It defines exactly how liability of all the debts of the firm will be jointly split, and how any tortious action or contracts of the firm will be handled appropriately. Business laws help define fiduciary relationships between partners, and how to legally interact with one another.

Business Contracts

In fact, business law affects every day lives when contractual dealings have been undertaken. In most incidences involving business, a contract is a specific type of commercial bargain that it usually involves exchange of services or goods at a price. The contract provides a legally binding agreement that is made by at least two individuals or companies.

The contract under business law is enforceable by judicial courts. The contracts designed under the laws can be oral or written. There must be an unqualified acceptance of the offer, along with the intention to create a legally binding relationship. In addition, the contract must include a valuable consideration (a financial amount) and the general consent to do business outside any aspect of fraud.

Business law, that helps design contractual relations, serves as the cornerstone of nearly every type of commercial transaction. It is often the scope of today’s business laws that regulate the sale of goods and products, the implication of terms and conditions, the effects of business performance, and any breach of a contract, with the potential of any remedy to a party that shows harm or damage.