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Non-Compete Agreement

definition, synonyms and explanation

Synonyms:

Non-compete clause, covenant not to compete

What is Non-Compete Agreement

A non-compete agreement is a contract between an employer and employee in which the employee agrees not to compete with the employer during or after the employment relationship.

Non-Compete Agreement explained

A non-compete agreement is a contract between an employer and an employee in which the employee agrees not to compete with the employer during or after the employment relationship. Non-compete agreements are also known as restrictive covenants.

The purpose of a non-compete agreement is to protect the employer's business interests by preventing the employee from going to work for a competitor or starting a competing business. Non-compete agreements can be included in an employment contract or they can be standalone agreements.

Non-compete agreements are typically enforceable in court if they are reasonable in scope and duration. The reasonableness of a non-compete agreement depends on the circumstances, including the nature of the employer's business, the employee's role, and the geographic area covered by the agreement.

If you are asked to sign a non-compete agreement, you should have it reviewed by an attorney to make sure that it is reasonable and enforceable.

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