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Non Compete Agreement


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Definition: A non compete agreement is a contract between an employee and an employer, where the employee agrees not to enter into competition with the employer after s/he terminates employment.

A non compete agreement is typically in effect for a certain period of time after employment ends.

There are issues regarding whether non compete agreements are legally binding. There isn't a simple answer. It varies from case to case, and can depend on state law, on how restrictive the agreement is (how much limits someone from working in their field or location), and on what the employer construes as competition.

Also Known As: Non compete, non-compete, non compete clause, non compete covenant

Examples: Amarella signed a non-compete agreement when she started her software development position at XYZ company.

Read More: Employment Contracts | Implied Employment Contract

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