Sometimes, an employee will quit and start a business similar to yours, or move on to a rival business -- after learning how to succeed by working for you.

Have your employees sign this "Noncompete Agreement" to prevent them from creating, or working for, a competing business. This will protect your unique processes, client lists, secret recipes or techniques -- the things that give you a leg up over the competition because they're unique to your business.

Important to Know:

• California will not enforce a noncompete agreement against employees -- however, California employers can still use a "Confidentiality (Nondisclosure) Agreement" to protect vital information.
• Some states -- Alabama, Colorado, Louisiana, Montana, North Dakota, Oklahoma, Oregon, South Dakota and Texas -- have laws that limit the use of noncompete agreements. If your business is in one of these states, consult an employment law expert. However, employees in these states can still be asked to sign a "Confidentiality (Nondisclosure) Agreement" to protect vital information.