How to Protect Your Business Without a Non-Compete: The Importance of Confidentiality and Non-Solicitation Clauses

In today’s rapidly evolving employment landscape, non-compete agreements are falling out of favor. Legislators and courts across the country are scrutinizing their fairness, enforceability, and impact on employee mobility. Several states have restricted or banned them outright, including Minnesota, and federal efforts are gaining momentum to limit their use nationwide.

So where does that leave employers?

The good news is, even in the absence of a non-compete agreement, businesses still have powerful tools at their disposal to protect confidential business information. At Eckberg Lammers, P.C., we work with organizations to develop employment agreements that protect what matters most—clients, proprietary information, and internal talent—through well-drafted confidentiality and non-solicitation clauses.

Why Confidentiality Clauses Still Work

Confidentiality clauses (sometimes called non-disclosure agreements) are critical for protecting the sensitive information that keeps your business running. These provisions clearly define what information is considered confidential, how it must be handled, and what consequences exist for violating the agreement.

A well-drafted confidentiality clause can protect:

  • Client and customer lists
  • Internal pricing structures and marketing strategies
  • Proprietary processes and trade secrets
  • Operational plans, forecasts, and intellectual property

These clauses are enforceable in nearly every jurisdiction and provide a reliable legal framework for addressing misuse or theft of information—even after an employee has left the organization.

The Value of Non-Solicitation Clauses

Non-solicitation clauses are another highly effective way to mitigate risk when employees move on. Unlike non-competes, these clauses do not restrict someone’s ability to work in their field—but they do prevent former employees from using their inside knowledge to harm your business.

These clauses can prohibit former employees from:

  • Soliciting your clients or customers
  • Recruiting or hiring away your staff
  • Leveraging confidential information to gain a competitive advantage

Because non-solicitation provisions are narrower in scope and more focused on protecting legitimate business interests, they’re much more likely to hold up under legal scrutiny—especially compared to broad non-compete clauses.

Employment Agreements That Are Built for Today

Whether you’re hiring new talent or reviewing contracts for existing employees, it is essential to ensure your employment agreements reflect the current legal environment. More than ever, your agreements need to be:

  • Clear and narrowly tailored
  • Compliant with state and federal laws
  • Aligned with your specific industry and business model

It’s Time to Reassess Your Risk

As the era of the non-compete continues to wind down, now is the time to revisit your employment agreements and consider what tools you’re using to protect your business. Confidentiality and non-solicitation clauses are enforceable, practical, and well-suited to modern workplaces.

At Eckberg Lammers, we take a proactive approach to drafting and reviewing employment agreements. We work closely with clients to ensure their contracts not only comply with today’s legal standards but also provide meaningful protection in the real world.

If you’re unsure whether your current agreements are doing enough—or if you’re starting from scratch—we’re here to help. Let’s talk about how you can proactively protect your business without relying on outdated or unenforceable restrictions.

Reach out to our team to schedule a consultation and take the next step toward stronger, smarter employment agreements.