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[Back to FAQ list] [Jump to this category page]What is a non-compete agreement?
It is an agreement to restrict an employee from working for a competitor, or otherwise working in the same or similar field as his or her employer. The agreement is effective while the employee is working for the employer and for a set period of time after leaving the company.
What elements should be specified in a non-compete agreement?
To be legally enforceable, a non-compete agreement generally includes:
- a reasonable time limit
- a reasonable geographic limitation
- specified restricted activities
Why would an employer want employees to sign non-compete agreements?
Non-compete agreements help protect a company's relationships with its clients. They also protect the company's investment in the training of its employees by preventing an employee from becoming a business rival in the same geographic area.
When do employers have employees sign a non-compete agreement?
In general, a prospective employee is required to sign a non-compete agreement as a condition of being hired. Occasionally an employee may be required to sign the agreement as a condition of continued employment with the company.
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