What is a non-compete agreement?

A non-compete agreement stops someone — usually an employee or contractor — from working for a competitor or starting a competing business for a set period after they leave.

Why would I use a non-compete agreement?

To protect your business from someone taking your clients, trade secrets, or key knowledge to a competitor after they stop working with you.

What is included in a non-compete agreement?

It includes the specific activities that are restricted, the geographic area covered, how long the restrictions last, and what the person receives in exchange for signing.

Can I have a non-compete agreement with a contractor?

Yes. A contractor non-compete agreement works the same way as one for employees, but also confirms that the contractor is self-employed and not entitled to employee benefits.

Are non-compete agreements always enforceable?

Not always. Courts will only enforce them if the restrictions are reasonable in terms of time, geography, and scope. An overly broad agreement may not hold up.

How long can a non-compete restriction last?

Most non-compete agreements last between 6 months and 2 years after the working relationship ends. Longer periods may be difficult to enforce.

What is the difference between a non-compete and a non-solicitation clause?

A non-compete stops someone from joining or starting a competing business. A non-solicitation stops them from approaching your clients or employees, even if they are not competing directly.

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