Protecting Valuable Employees

Jun 02, 2017

Managed Service Providers work hard to attract the talent necessary to support the demands of their clients. The time, expense, and effort expended to train and acquaint even experienced employees can be signifiant. So MSPs should consider ideas with their MSP lawyer about how to protect these valuable assets.

A common thought is to require the employee to sign a non-compete agreement. Such agreements are made between the MSP and its employee. Generally, these agreements must be crafted with the particular state laws in mind to maximize the enforceability of the agreement. Non-compete agreements may be legally complex to prepare and should be reviewed at the time there are changes in the employees compensation, responsibilities, title, and other variables.

 A less common approach is to limit client’s ability to hire the MSP’s employees. Clauses inserted into a maser agreement can be drafted from the simple sentence to robust language that covers varying scenarios such as when an employee may be poached, the process for doing so, and how the MSP will be compensated, if at all. Of course, the clause may be very restrictive, but savvy MSPs may be able to place a value on its personnel as it would other valuable assets.  

When considering how to handle protecting the highly sought-after employees of a technology company, it can be helpful to consult with an MSP attorney with experience in drafting and negotiating high-tech professional services contracts.