Glossary

Noncompete agreements are legal contracts that limit an employee's ability to work for a competing company or start a competing business for a certain period of time after leaving their current job. 

Noncompete agreements can be significant in industries that rely heavily on intellectual property or proprietary information. 

Noncompete agreements protect an employer's valuable assets, such as trade secrets, confidential information, and customer relationships, by preventing former employees from using this information to benefit a competitor. 

Typically, noncompete agreements specify the contract’s:

• Duration.

• Geographic scope. 

• Restricted work type.

• Compensation or other benefits exchanged with the employee for agreeing to the noncompete clause.

Please note: 

Employers and employees must carefully consider the terms of the agreement and ensure the contract is fair, reasonable, and legally compliant before signing.