What is a non-compete agreement?

A non-compete agreement is a contractual agreement that restricts competition after employment ends for a specified period. This type of agreement typically prevents an employee from working for competing businesses or starting a similar business in a defined geographical area for a certain duration after they leave their job. The purpose is to protect an employer's business interests, proprietary information, and client relationships.

Non-compete agreements are often used in industries where sensitive information, trade secrets, or client lists are prominent. While the enforceability of non-compete agreements can vary by jurisdiction, they generally must be reasonable in their scope and duration to be considered valid and enforceable in a court of law. This ensures that while employees have the freedom to work, employers can also protect their business interests.