non-compete
Definition
A non-compete is a contract where one person agrees not to work for competitors or start a competing business for a set period of time after leaving a job or selling a company. Employers use these agreements to protect trade secrets, customer relationships, and other business advantages they've built over time.
Example
If you hire a sales manager and have them sign a non-compete, they might agree not to work for any competing business within 50 miles for two years after they leave your company.
Watch Out
Courts in many states refuse to enforce non-competes that are too broad in scope, geography, or time, so an overly aggressive agreement might not protect you at all when you actually need it.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.