I had this story forwarded to me and I thought everyone here would be interested in it as well. If you are concerned about your employees quitting after they have worked for you and then starting their own company, have all your employees sign a non-competition agreement. It is a good idea!
Here a background article on the legal enforcement of such agreements.
"Courts have traditionally enforced non-competition restrictions that are limited to one to two years in duration and tied to where the employer actually conducted business." http://www.gigalaw.com/articles/2000...00-08-all.html