As a business owner, especially in the technology sector, you might wonder: “Should I have my employees sign an employee agreement?” The answer, as explained by veteran corporate lawyer Phil Crowley, is a resounding yes – it’s a prudent and highly advisable practice.
In this crucial video, Phil Crowley, founder of Crowley Law LLC, details why formal employee agreements are vital for protecting your company’s most valuable assets. He emphasizes two primary areas that these agreements should cover:
Intellectual Property (IP) Ownership:
It’s essential to have employees formally acknowledge in writing what is typically provided by law: that all intellectual property they create within the scope of their employment – including patents, inventions, writings, and any material subject to copyright – belongs to the employer. This written confirmation is crucial for clarity and serves as an important reminder, especially when an employee departs.
Confidentiality Obligations:
Employee agreements should include robust confidentiality provisions. Employees often gain access to sensitive, inside information about a company’s operations, strategies, and trade secrets. A written agreement legally binds them to keep this information confidential, preventing potential damage to your business if such information were to be disclosed.
Having well-drafted employee agreements covering these key areas is a fundamental step in safeguarding your company’s intellectual property and proprietary information. Don’t leave these critical protections to chance.
If you’re a founder or business leader in a technology-driven industry, ensuring your employee agreements are comprehensive and legally sound is paramount.