When starting a business, one of the most important things to consider is how you plan to finance the company. Whether you are looking for a loan from a bank or an investment, understanding your options when it comes to financing can help ensure your success.
Businesses often require additional funding when they face cash flow problems or want to expand their operations. Without sufficient funds, businesses may struggle to cover operational costs or invest in growth opportunities. By securing financing from external sources, businesses have access to extra money. This frees up money for other expenses, such as inventory or paying employees.
One of the most common forms of financing for businesses is through loans. This can be done through banks or other lending institutions, such as credit unions or online lenders. Loans typically come with low interest rates and are relatively easy to get if you have good credit and can prove that you have a viable business plan.
However, they also have strict repayment terms that must be met in order for the loan to not go into default. It is important that you understand all the terms before taking out a loan so that you do not end up in over your head financially.
Another popular way for businesses to secure financing is through equity investments from venture capitalists or angel investors. These investors put money into your business in exchange for either part ownership or future profits from the company.
While this type of financing does not require any collateral, it does mean that you will be giving up some control over your company and may be liable for taxes on any profits generated by your business down the line. It is always best to work with an experienced attorney when negotiating these types of deals so that you know exactly what you are getting into beforehand.
Crowdfunding has become increasingly popular in recent years as more people turn to social media and crowdfunding sites to raise money for their businesses or projects. Crowdfunding allows individuals or companies to reach out directly to potential investors who may believe in their cause and want to support them financially.
While this can be a great way to get funding quickly, it also requires an immense amount of effort on your part since you need to create campaigns, build relationships with potential donors, and generate publicity for your cause before anyone will invest. Additionally, most crowdfunding sites charge fees for using their services, which can add up quickly if you do not reach your goals within a certain time frame.
Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help Your Business Grow Financially
Getting the right funding for your business can seem daunting. Protect yourself and your business by speaking with our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. to discuss your legal options. Contact us at 215-574-0600 or complete our online form to schedule a consultation. Located in Philadelphia, we serve clients in Pennsylvania and New Jersey.
Conflict in the workplace happens. Whether it is between co-workers, managers, or customers, disputes arise and need to be addressed quickly and efficiently. Unresolved conflict can lead to a disengaged and unhappy workforce, which can be detrimental to your business. It is important to have strategies in place for resolving employment disputes when they occur. Here are some tips on how you can approach resolving conflicts in a productive way.
Clarify the Source of Conflict
The first step is understanding why the dispute has occurred in the first place. It could be due to differences in opinions about something, or a misunderstanding of expectations between parties. It could even be due to a disagreement about resources or who gets credit for tasks completed. Taking time to gain clarity on where the issue lies is essential before moving forward with any resolution plan.
Find a Safe Space To Talk
Once you have established what sparked the conflict, it is important that everyone involved feels safe enough to voice their feelings and opinions without fear of judgment or retribution from anyone else involved. This could mean having an open discussion about the situation or bringing in a third-party mediator who can ensure that everyone has a chance to speak openly without interruption from anyone else involved in the dispute.
Listen and Let Everyone Have Their Say
Listening is key when it comes to resolving conflicts at work; it shows respect for everyone involved and helps build trust between the parties. This means actively listening and paying attention to what everyone is saying so that you can understand each side of the story before coming up with a solution.
In some cases, like if harassment is involved, an investigation may need to take place before any resolution can be reached. If someone says that they have been treated unfairly, it might need to be investigated. This means asking questions and looking for the truth about what happened. It is important to be impartial and open-minded during this process so everyone has the chance to present their case. Make sure you document your investigation, as it could be needed if a legal issue arises.
Agree On an Outcome
After all sides have had their say, it is important that an outcome is reached or an agreement is made between those involved so there are no lingering issues. If no consensus or agreement can be made, then make sure that you make the best decision for your business moving forward; this will help maintain productivity and keep morale high. If there is a legal matter like discrimination involved, it is advisable to discuss the outcome with a legal advisor.
Evaluate and Prepare
An employer can evaluate an employment conflict outcome by assessing the root cause of the dispute, identifying patterns or trends that may have led to the conflict, and investigating potential workplace policies or legal issues that may have been involved. Additionally, they can look back at communication between all parties involved, review feedback received from employees regarding their experience with the situation, and take necessary steps to create a positive work environment. This could include introducing stronger HR protocols, providing additional training or coaching resources for both management and employees, and creating open channels of communication.
Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You Resolve Your Business Disputes
Despite taking precautions, you may still find yourself with an employment dispute. This is not something you should ignore. Speak with one of our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C today. Contact us at 215-574-0600 or complete our online form to schedule an initial consultation. Located in Philadelphia, we serve clients in New Jersey and Pennsylvania.
When it comes to filing business taxes, careful preparation makes all the difference. If you make filing errors on your taxes or the IRS thinks you did, addressing their challenges can be overwhelming and intimidating. It is an investment of time and money, but the benefits can include significant tax savings, a better understanding of how the tax laws work, and the confidence that comes with knowing your company is protected should issues arise.
A business attorney can offer tax planning advice but can also provide additional support when disputes arise. Since business owners deal with considerably more tax laws than other people, they can often benefit from working with an attorney. If your company gets audited and/or your tax payments come under scrutiny, a business attorney can help.
How Can I Choose a Business Attorney?
The main reasons to seek out a business attorney for tax assistance include:
- Needing to set up a hearing in front of a U.S. Tax Court.
- Settling a major tax dispute, setting up installment plans, and guidance with innocent spouse relief.
- Wanting to sue a state or local tax authority or the IRS.
- International business taxes and regulations.
- Making the most of your deductions.
- Reporting business income and expenses.
- Straightening out payment of employee taxes.
When researching different business attorneys, look for ones that are in your local area since you will need to visit the office. Verify that they have licenses to practice; this information can be found on your state’s bar association website. If you are looking for someone to also prepare your taxes, there should be a preparer tax identification number shown as well.
Business attorneys also help clients with the legal and tax implications of new or startup companies. This includes helpful advice, strategic short-term and long-term planning, and preparation and completion of all the necessary legal documents.
Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. Can Help You Get Your Business Taxes in Order
Tax season can be particularly intimidating for business owners, but one of our trusted Philadelphia business attorneys at Sidkoff, Pincus & Green P.C. can guide you through the process. If you need help with your business taxes, complete our online form or call us at 215-574-0600 to schedule an initial consultation. We are located in Philadelphia, and we proudly assist clients in New Jersey and Pennsylvania.
As a business owner, you likely have information that you would like to keep secret from your competitors. This type of information is known as a “trade secret,” and it is important to take steps to protect it.
Similarly, you may also have information that is not necessarily a secret but is still confidential. This could include employee records, customer lists, or supplier contracts. While this information may not give your competitors an advantage, it could still be damaging if it fell into the wrong hands. As such, it is important to consult a business attorney to take the necessary steps to protect both your trade secrets and confidential information.
What Is a Trade Secret?
A trade secret is any type of information that would give your business an advantage over its competitors if it were made public. This could be a new product you are developing, information about your sales or marketing strategy, or even just your company’s financials. Trade secrets can be either physical (like a formula) or non-physical (like customer data). As long as the information is not generally known and you have taken steps to keep it secret, it can qualify as a trade secret.
The most famous example of a trade secret is the Coca-Cola recipe. While the recipe for Coca-Cola includes just seven ingredients, the specific proportions of those ingredients are unknown outside of the company. Coca-Cola has gone to great lengths to keep the recipe secret, including building a vault to store it in and only allowing two employees to know the full recipe at any given time.
What Is Confidential Information?
Confidential information is any type of non-public information that could be damaging if it fell into the wrong hands. This could include employee records, customer lists, or supplier contracts. While this information may not give your competitors an advantage if it were made public, it could still be damaging if it fell into the wrong hands. For example, if an employee list was leaked online, your employees could become targets for identity theft or fraud. Similarly, if customer data was leaked, your customers could lose trust in your company and take their business elsewhere.
Tips to Keep Information Secure
- Limit access to trade secrets and confidential information to only those employees who need to know.
- Require employees to sign non-disclosure agreements (NDAs) before they are given access to trade secrets or confidential information.
- Store trade secrets and confidential information in a secure location, such as a locked filing cabinet or password-protected computer file.
- Make sure all physical copies of trade secrets and confidential information are shredded or destroyed when they are no longer needed.
- Do not discuss trade secrets or confidential information in public places or on unsecured communication channels (such as email or social media).
- Have a plan in place for what to do if trade secrets or confidential information are leaked. This might include contacting the police or hiring a lawyer.
- Educate employees on the importance of keeping trade secrets and confidential information safe. This can be done through regular training sessions or by including this topic in the employee handbook.
- Consider insurance policies that will cover the cost of damages if trade secrets or confidential information are leaked.
- Review your security measures regularly and update them as needed to ensure that they are adequate for protecting your company’s most important assets – its people, its products, and its reputation.
- Seek legal advice if you have questions about how to protect your company’s trade secrets or confidential information.
The Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. Protect Your Business Assets
Protecting your business assets is vital to your future growth and success. Part of that includes protecting your trade secrets and confidential information. Speak with our knowledgeable Philadelphia business attorneys at Sidkoff, Pincus & Green P.C. to discuss your options to keep your assets safe. Contact us at 215-574-0600 or inquire online. With offices in Philadelphia, we proudly serve our neighbors in South Jersey, Pennsylvania, and New Jersey.
The workplace can be a tricky environment to navigate, especially when it comes to understanding your rights as an employee. Employers often track internet, email, and phone use, so employees do not have an expectation of privacy in the workplace, but employee privacy rights are protected in the workplace.
What are Employee Privacy Rights?
“Employee privacy rights” refer to the degree of protection offered to workers from their employers. Unfortunately, there is not much protection for employees from their employer when it comes to searching company computers and property. This means that employers are usually within their legal rights to search a computer or other company property for any reason they deem fit.
As such, any emails you send on a company computer can be read by your employer if they choose to do so. Generally speaking, employees do not have an expectation of privacy while using company-owned equipment or devices.
How Employers Track Employees’ Usage?
Employers may track internet usage through monitoring software programs. These programs will look at all data that passes through a network—including websites visited and emails sent—so employers can see what their employees are doing with company technology during work hours. They may also track employee phone calls and emails by making recordings of them for quality assurance purposes, or looking through emails sent from work accounts for any suspicious activity. Some companies may even install GPS tracking on company vehicles so they can monitor their drivers’ whereabouts during work hours.
Employees’ Rights in the Workplace
Despite these methods of monitoring employed by employers, there are still certain rights afforded to workers in most workplaces including the right to be free from harassment and discrimination, the right to be free of toxic substances and dangerous conditions, and the right to be free from punishment for making a complaint or filing a claim against their employer or co-worker(s). Besides these protections, there are certain other areas where employees have a reasonable expectation of privacy, like the bathroom. Employees have a right to use the restroom without being monitored or observed by their employer or coworkers. This expectation of privacy is based on both legal and ethical considerations. From a legal standpoint, employers are required to provide safe and sanitary restroom facilities for their employees, which includes protecting their privacy while using these facilities.
Employers may install security cameras in certain areas of the workplace for safety and security reasons, but these cameras should not be placed in restrooms or other areas where employees have a reasonable expectation of privacy, like personal belongings. Even if a backpack or purse is brought to work, an employer cannot search these items without a valid reason or the employee’s consent.
The Philadelphia Employment Attorneys at Sidkoff, Pincus & Green P.C. Protect Your Rights in the Workplace
If you think your workplace rights have been violated, speak with the Philadelphia employment attorneys at Sidkoff, Pincus & Green P.C. Contact us at 215-574-0600 or inquire online to schedule a consultation. With offices in Philadelphia, we proudly serve our neighbors in South Jersey, Pennsylvania, and New Jersey.
The word “insolvency” signifies financial distress for individuals or businesses when debts cannot be paid on time. It is generally used after a company has entered into informal arrangements with its creditors to pay off what is due. When those do not pan out, further steps are taken.
Why Do Businesses Become Insolvent?
Businesses and companies become insolvent for a number of reasons. Poor human resources management and inadequate accounting are two main causes. It can also happen when businesses raise their costs and share that with large clients, who soon after end the relationships. Other reasons that lead to less income and high debt include not meeting customer needs, and costly lawsuits.
Insolvencies can be temporary when assets are liquidated and/or debts are restructured into manageable payments. Many times, smaller companies are bought by larger ones that assume the debt. Creditors tend to prefer those options over not getting repaid at all. A repayment plan has to be realistic and have evidence showing where the cash will come from while the business remains profitable.
Is Insolvency the Same Thing as Bankruptcy?
Insolvency and bankruptcy are two different things. Insolvency is a temporary situation that hopefully gets resolved. When that does not happen, a company may have to declare bankruptcy. During bankruptcy proceedings, a court decides how the insolvent party will handle the unpaid obligations. That could involve selling off more assets, and could negatively impact a company’s credit rating.
New Bankruptcy Laws
For the past few years, lenient lenders, low interest rates, and government stimulus money have worked to decrease the number of Chapter 11 filings. The 2019 Small Business Reorganization Act (SBRA) also made Chapter 11 more accessible to debtors; the CARES Act (temporarily) raised the debt limit to $7.5 million for many eligible small businesses. How did this happen?
In 2020, a subchapter was added to Chapter 11 through the SBRA: Subchapter V. Designed to help small businesses with limited time and resources, it lessened the time and money needed for bankruptcy cases. Through Subchapter V, businesses with less than $2.7 million in debt could apply for this program. Things changed after the $2.2 trillion CARES Act; now the threshold is $7.5 million. In essence, small businesses with debt up to $7.5 million can be eligible to file for bankruptcy under Subchapter V.
Impacts of Subchapter V
As a result of Subchapter V, more small businesses have become eligible to apply for faster, less costly bankruptcy filings. Since 2020, more than 3,400 small businesses filed for Subchapter V relief, bypassing traditional Chapter 11 filings. Insolvent businesses can reap these other advantages by filing for Subchapter V:
- Creditors are responsible for uncovering debtor abuse and fraud because there are no appointed creditors’ committees. Debtors pay creditor committee expenses in typical Chapter 11 filings.
- With Subchapter V, creditors are responsible for determining if debtors are properly qualified small businesses.
Contact the Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. if Your Business Has Become Insolvent
The rules for legal bankruptcy filings have certainly changed these past few years and it can be challenging to know what best suits your needs. For a confidential consultation, contact the experienced Philadelphia business attorneys at Sidkoff, Pincus & Green P.C. Call us at 215-574-0600 or complete our online form today. We are located in Philadelphia, and help clients in South Jersey, Pennsylvania, and New Jersey.
A contract is a legal document that outlines the scope of the agreement between two or more parties, as well as their respective rights and responsibilities. It also serves as a legal protection for both parties involved in case of a dispute or disagreement.
Why Use Business Contracts?
Contracts help define the scope of an agreement between two or more parties, as well as their respective rights and responsibilities. They also serve as a legal protection for both parties involved in case of a dispute or disagreement. Without a contract in place, either party may take advantage of the situation by not fulfilling their end of the bargain—with no recourse available to the other party.
In addition, contracts provide details about payment terms and other key items related to the business relationship. This includes information such as how long the agreement will last (or when it will expire), what happens if one party fails to perform according to expectations (legal repercussions), who owns any intellectual property created during the course of working together (copyrights) and more. Without these details laid out clearly in a contract, it is much easier for misunderstandings and disagreements between two parties to arise.
Contracts also help protect businesses from unexpected liabilities and unforeseen costs associated with entering into agreements with third-party vendors or partners. Having a contract can help protect your interests if you do end up facing unexpected liability or cost issues later on down the road.
Contracts are essential for any business relationship because they define each party’s rights and responsibilities while providing legal protection against potential disputes or disagreements that may arise during the course of working together. They also provide details about payment terms and other key items related to the business relationship which can save businesses from unexpected liabilities or unforeseen costs associated with entering into agreements with third-party vendors or partners down the line.
General Terms to Include
Every business contract should include, at a minimum, the following terms:
- Parties Involved: All parties involved in the contract must be identified, with their name and address, as well as any relevant contact information.
- Subject of Contract: The contract should clearly identify what is being agreed on, such as services rendered or goods supplied by each party.
- Duration of Contract: The duration of the agreement should be specified and accepted by both parties.
- Payment Terms: Payment terms for any goods or services provided should be detailed in the agreement. This will include any payment due dates and refund policies, if applicable.
- Obligations of Parties: Both parties must understand their roles and responsibilities outlined in the agreement, which might also state how long a party has to perform its service or provide its goods before breach occurs.
- Conditions of Termination: All contracts should detail procedures for termination of the agreement, including how either party can legally end the contract and any obligations that remain after it has been terminated.
- Governing Law: It is essential to specify which law governs the agreement and where any disputes will take place if necessary.
The Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. Protect Your Business
To make sure your business is protected, speak with the Philadelphia business attorneys at Sidkoff, Pincus & Green P.C. Contact us at 215-574-0600 or inquire online. With offices in Philadelphia, we proudly serve our neighbors in South Jersey, Pennsylvania, and New Jersey.
For complex legal situations like a workplace discrimination claim, it is often a good idea to seek advice and guidance from legal counsel. An experienced employment lawyer can help you navigate the difficult process ahead.
How an Employment Lawyer Can Help You?
An experienced employment lawyer can provide invaluable assistance to an employee who may have been discriminated against at work. An employment attorney can help the employee in various ways beyond mere representation, such as gathering evidence and determining how the employer violated any laws and to what extent.
Gathering evidence is a critical step in filing a discrimination claim. Experienced attorneys can help employees collect and document relevant information that proves discrimination occurred. This includes collecting emails, text messages, witness statements, and relevant documents. An attorney can assist by conducting interviews with witnesses and obtaining the employer’s records on the case.
Determine Whether the Employer Broke the Law
Determining whether the employer violated any laws is another important role for an experienced employment lawyer. An attorney can review state and federal laws related to discrimination and advise their clients on whether they may have a valid claim. They can also review any applicable collective bargaining agreements to see if there were any breaches of duty by the employer.
Presenting Your Case in Court
Presenting a case in court requires knowledge of civil procedure. A seasoned employment attorney will be familiar with all the steps involved in litigation, including how to properly draft pleadings, file motions, respond to discovery requests, present oral arguments, and negotiate settlements with opposing counsel. An attorney’s knowledge of court rules and procedures can greatly improve an employee’s chances of success when pursuing a discrimination claim against their employer.
Examples of Illegal Workplace Discrimination
Potential illegal workplace discrimination could be a manager refusing to promote an employee solely based on their gender. The manager may have given other people with lesser qualifications the promotion and justified it by saying the passed over employee was not a “good fit” for the job despite their qualifications, while every other person promoted was of the same gender, different from the employee passed over. This type of gender-based discrimination is illegal in all workplaces and can leave employees feeling devalued and powerless.
Sexual harassment can also rise to the level of illegal workplace discrimination where a supervisor sexually harasses an employee. This type of discrimination is illegal and involves unwelcome conduct, such as physical or verbal advances, making derogatory comments, or sending inappropriate texts or emails. In the scenario, the employee may feel powerless and unable to speak up because they fear reprisal from their superior. Sexual harassment can create a hostile work environment, leaving employees feeling embarrassed, intimidated, and violated.
Illegal workplace discrimination can also look like a hiring manager passing over qualified applicants based on their race or ethnic background. In this scenario, the manager would place job postings with language designed to restrict certain applicants from applying, such as indicating they “prefer” an applicant from a certain background, requiring unnecessary qualifications, or offering lower pay for the same position based on a person’s race. This type of discrimination is illegal and violates an individual’s right to equal employment opportunities. Such discriminatory practices can discourage employees from applying for positions and leave them feeling frustrated and undervalued in the workplace.
The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Protect Your Rights as an Employee
If your employer is discriminating against you, you may have a valid legal claim against them. To explore your legal options, speak with our experienced Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. Call us at 215-574-0600 or fill out our online form to schedule an initial consultation. With offices in Philadelphia, we proudly serve our neighbors in South Jersey, Pennsylvania, and New Jersey.
Businesses that are not protected from risk are vulnerable when unpredictable situations occur and spiral out of control. While situations like skyrocketing interest rates and politics cannot be controlled by the business owner, entrepreneurs can protect themselves against lawsuits and other risks. Many businesses have shuttered their doors permanently because they did not prioritize risk management. With the stakes being so high, company owners should understand the importance of effective risk management strategies.
How Can I Determine What Risks My Business Faces?
A risk management strategy starts out by identifying sources of legal threats. The main dangers come from contracts, structural changes, regulations, and litigation. Specific threats can be pinpointed and compiled into a list that describes the risks in detail. Next, they can be categorized into the ones most likely to the ones least like occurring, taking the likelihood of financial loss into account.
Risks can also be frequent and infrequent: employees might steal things, there could be bad weather that cancels an outdoor festival, but insurance would cover these kinds of losses. Other legal risks include potential slips and falls inside a hardware store, intellectual property lawsuits, or a major fire. The legal consequences can be compensatory or punitive, like monetary fines or injunctions that close companies down.
Just like individuals, businesses have certain insurance needs, and having the same policy for years without regular reviews is risky. Business owners can also purchase life and disability insurance to cover losses and provide for their loved ones.
Businesses that sell products can hire attorneys to review their goods for litigation and regulatory risks. An example of a risk might be an improperly labeled product: if a consumer follows incorrect directions and becomes injured, the company might be held liable. Another area of risk management is contracting. Companies that hire vendors use contracts, which require the proper language to spell out what both parties’ responsibilities if the contract is broken.
Managing Physical Risks
Having the appropriate legal framework for risk management is crucial but business owners still need to be diligent about minimizing the chances of adverse events happening. One of the first steps is to analyze the location hazards and put an emergency plan in place. An example of a location hazard might be a gas station down the street that could potentially catch fire. All employees must be made aware of emergency protocols, with a clear chain of command to step in should something happen.
Businesses should also have working alarms, smoke detectors, and sprinkler systems. If there are hazardous materials like toxic liquids on-site, employees have to be trained and properly equipped to handle them safely. These are just a few examples of physical hazards and there are other risks related to employee behaviors, technology, and strategy.
Managing risk might seem like an overwhelming undertaking, but modern legal technologies will help you and your employees streamline the processes so you can focus on running your company.
The Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Companies Manage Risk
At Sidkoff, Pincus & Green P.C., our experienced Philadelphia business lawyers can help analyze your company’s risks and develop a solid strategy to manage them and protect your interests. Contact our Philadelphia office at 215-574-0600 or complete our online form for more information. We serve clients throughout South Jersey, Pennsylvania, and New Jersey.
Recently, the Federal Trade Commission (FTC) announced that non-compete agreements could be banned, removing the standard workplace practice of restricting a worker’s ability to move between jobs. These contracts have been used in the past to protect companies’ trade secrets and other confidential corporate information by preventing employees from leaving for a rival company, competing with their current employer, or sharing confidential information.
The FTC states that these agreements can restrict innovation and harm workers’ ability to earn more money. With this in mind, it is essential to look at the pros and cons of banning non-compete agreements, both for employers and employees.
What is a Non-Compete Agreement?
In today’s competitive business landscape, non-compete agreements are becoming an increasingly common way for employers to protect their trade secrets and other confidential information from competitors. These contracts usually involve a worker agreeing not to leave the company and join a rival business or take advantage of any opportunities with a competitor within a specified period of time. Additionally, they may also include clauses restricting employees from developing inventions using the same skills they acquired while working at their current job.
The purpose of non-compete agreements is to ensure that employees do not leave their current company with confidential information or use knowledge gained on the job to benefit other companies. On the flip side, some argue that these contracts can be overly restrictive and ultimately limit employees’ ability to progress in terms of wage increases or future opportunities. Ultimately, it is up to companies and their workers to determine if and when non-competition contracts should be used and whether the FTC formally bans them as a corporate practice.
Pros of Banning Non-Competes
From an employee standpoint, one main benefit of banning non-compete agreements is that they will no longer feel restricted from pursuing new opportunities. This means they can join rival companies or pursue higher wages without fear of legal repercussions. Additionally, these individuals will have increased freedom to innovate, as they won’t be limited by any clauses restricting their actions.
For companies, a ban on non-compete agreements could result in access to a larger pool of qualified candidates and new ideas. Since the best talent may not want to work under conditions that limit their future opportunities, this would give them more incentive to come work for a new company. Moreover, having a wider selection of job applicants could create greater competition between potential employees, which could lead to better quality work overall.
Cons of Banning Non-Competes
Despite the potential benefits mentioned above, there are some downsides to banning non-compete agreements for both parties involved. For instance, it may become easier for former employees who know sensitive information about your business to leave with it and use it against your company if they move onto a new organization within the same industry. Thus, businesses need access to legal recourse if this situation arises.
Employers may argue that a ban on non-competes would make it too difficult for them to retain their top talent, since nothing would prevent them from going elsewhere. Companies might also worry that without any restrictions on development outside the workplace, some employees may contribute their own ideas towards competitors instead of developing new ones specifically for their current employer’s use.
The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Protect Your Rights as an Employee
To discuss your legal options, speak with the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. Contact us online or call us at 215-574-0600. With offices in Philadelphia, we proudly serve our neighbors in South Jersey, Pennsylvania, and New Jersey.