Career GlossaryNon-Compete Agreement
Career Definition
What is Non-Compete Agreement?
A contractual clause restricting an employee from working for competitors or starting a competing business for a specified period after leaving a company.
In-Depth Definition
Non-compete agreements typically specify a duration (6 months to 2 years), geographic scope, and industry restrictions. They are intended to protect trade secrets and proprietary knowledge.
The enforceability of non-competes varies dramatically by state. California bans them entirely, while states like Florida and Texas enforce them routinely. The FTC has proposed a nationwide ban, but enforcement remains state-level.
Why Non-Compete Agreement Matters in 2026
Signing a non-compete without understanding its scope can limit your career options for years. Always have an employment attorney review non-compete clauses before signing.