On many occasions, people start up a business without spending sufficient time or resources to address legal issues. If, as the entrepreneurs hope, the business becomes successful, the lack of preparation and forethought can create expensive problems for the company.

One issue every business owner should consider at the venture’s outset is having employees execute covenants not to compete, which can prevent employees from taking advantage of certain proprietary information obtained during and through the course of their employment, and subsequently using it to the employer’s disadvantage and for either a new employer or the soon-to-be former employee’s personal benefit.

In the absence of a covenant not to compete, a business can only prevent former employees from disclosing to third parties information obtained from the company that constitutes “trade secrets.”

In their weekly Boca Raton News column, Hodgson Russ partners Larry Corman and Glenn Rissman discuss issues employers should be aware of to aid in protecting their proprietary information.

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