Noncompete agreements prevalent
By Patt Johnson
The Des Moines Register
Noncompete agreements — contracts in which employees agree not to share trade secrets or work for a competitor — used to be only for broadcasters and salespeople.
Not anymore. With competition facing many corporations at every corner, more businesses are taking steps to protect their resources.
Noncompete agreements are emerging especially among companies with extensive customer lists or those with research-and-development projects to protect.
Most agreements restrict an employee from working for a competitor for six months or more in the city or region where they operate.
People most likely to be asked to sign noncompete agreements include insurance agents, employees of technology companies, workers in sales and "anybody that's got something that's a trade secret," said Roger Kuhle, a Des Moines attorney who specializes in employment law.
Pioneer Hi-Bred International Inc., a seed production and development firm in Des Moines, requires all employees to sign a business conduct policy that prohibits them from taking or sharing information outside the company.
"Our areas of concern are mainly our research departments," said Doyle Karr, Pioneer spokesman.
Karr said the policy also helps attract and retain "the best talent and the best people" by assuring them the work they do at Pioneer will be protected.
"We treat people like professionals, and we don't share our information with anyone outside the company," Karr said.
Rarely is the policy violated, Karr said. If it happens, Pioneer vigorously pursues its privacy rights.
Last year, Pioneer successfully settled a lawsuit against a former employee who admitted taking Pioneer corn and giving it to Cargill Corp. to develop seed there. The former employee agreed to never use the Pioneer corn in future breeding and paid Pioneer an undisclosed amount as part of the settlement. Cargill also agreed to a $100 million settlement with Pioneer, Karr said.
Des Moines insurance agent Rick Barnes said that while he has an agreement with his employer, State Farm, he also asks the customer service representatives working for him to sign a pact that they not take customer records should they leave his employment.
