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It is always recommended that you have employees execute reasonable restrictive covenants (or non-compete agreements) and confidentiality agreements when you, as the employer, provide employees with confidential and proprietary business information and clients. However, just because your former employee does not have a restrictive covenant/non-compete agreement, does not mean that the employee can steal your clients and confidential information.

If you have been improperly labeling your employees as independent contractors, then a new IRS program gives you the opportunity to reclassify those workers as employees at a relatively minor cost. With the introduction of the “Voluntary Classification Settlement Program (the “VCSP”), the IRS is providing this opportunity as a “last chance” for employers to come into compliance before it becomes more vigilant about proper classification in the future.

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