What is typically included in a non-compete agreement?
Are non-compete agreements legal in every state?
How can a non-compete agreement affect employees' careers?
A non-compete agreement is a contract that prevents employees from working for competitors or starting competing businesses for a specified period after leaving a company.
Non-compete agreements protect employers' confidential information and client relationships, ensuring the continuity of these assets. They often include time limits ranging from six months to two years. The agreements can impose geographic limitations and restrict certain employers or functions.
Non-compete laws vary by state.Some states, such as Washington, ban them for low-wage workers or specific professions. Other states, such as Texas, allow agreements that protect legitimate business interests. Compliance management helps ensure agreements are enforceable.
Non-competes can limit employment mobility and opportunities within an industry. They may prevent employees from starting their own business or accepting positions with competitors in certain areas. However, they can also provide job security by making it harder for employers to replace them.
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