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Best Buy expands use of non-competes in employment contracts

In today’s economy, employment law issues can involve a wide array of important concepts. Employment contract issues may arise in many different types of industry. People may be familiar with the idea from media reports about contact negotiations between businesses and high level executives at a company. Often, major media personalities (or local broadcast personalities) may hit the headlines over a non-compete agreement dispute with a former employer.

Many corporations are using non-compete clauses as a part of employment contracts. A worker in New York may be asked to negotiate or sign a non-compete agreement at many levels of business. A recent story out of the Midwest shows how some businesses are expanding the number of workers who are being asked to enter into a non-compete.

Reports indicate that Best Buy, a major electronics retailer, is expanding use of non-compete agreements beyond the high level executive levels of years past. The company is asking some directors and vice presidents to enter non-compete agreements using future stock awards as an incentive.

The deals reportedly include a one-year term where the worker agrees not to work for any competitor of the electronics retailer anywhere in the world. Generally, non-competes have historically been used by companies to protect their own interests, such as trade secrets. Some companies, like in the broadcast industry, use the deals in an effort to protect ratings.

Employment contract issues generally can involve complex legal analysis. Negotiating an employment contract may be much different from litigating an issue if a dispute should rise. New York residents may speak with an employment law attorney about concerns related to an employment contract dispute.

Source: Star Tribune, “Continued: Best Buy expands noncompete restrictions further down corporate ladder,” Thomas Lee, June 5, 2013

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