Question for the group - I'm thinking about adding non-compete language to my engagement agreements to prevent clients from sharing my methodologies with other auditors or doing the work in-house after I train them. AEP territory here in Corpus Christi. Has anyone tried this and is it actually enforceable?
Non-compete clauses - are they enforceable?
Vivian - non-competes are tricky and vary by state. Here in Missouri they're enforceable if reasonable in scope and time. But honestly, I'd focus more on non-disclosure agreements protecting your specific methodologies and rate analysis techniques. Easier to enforce and accomplish the same goal.
I use NDA language instead of non-compete. Clients can't share my proprietary tariff analysis spreadsheets or rate optimization algorithms with competitors. Much more reasonable and defensible than trying to prevent them from hiring other auditors later. Plus it protects your real competitive advantage - your methods, not just your client relationships.