When you enter into a new job, you may be asked to sign a non-compete agreement. But what exactly are non-compete contracts, and how do they work?

A non-compete agreement is a contract between an employer and an employee that prohibits the employee from working for a competitor of the employer for a specified period of time after leaving the company. The purpose of a non-compete agreement is to prevent the employee from taking knowledge and clients to a competitor and potentially harming the employer`s business.

Non-compete agreements typically include details about the geographical area and the length of time during which the agreement is in effect. For example, an employee may be prohibited from working for a competitor within a 50-mile radius of their previous employer for six months after leaving the company.

It`s important to note that non-compete agreements are not always legally enforceable. The laws regarding non-compete agreements vary by state, and some states have strict regulations that limit the enforceability of these contracts. For example, California generally prohibits non-compete agreements for employees.

Before signing a non-compete agreement, it`s important to carefully review the terms of the contract and understand the extent of the restrictions it imposes. Additionally, it`s important to consider whether the terms of the agreement are reasonable and necessary to protect the employer`s legitimate business interests.

If you have signed a non-compete agreement and are thinking about leaving your current employer, it`s important to speak with an attorney who specializes in employment law to understand your rights and obligations under the contract.

In summary, non-compete agreements are contracts between an employer and employee that prohibit the employee from working for a competitor for a specified period of time. The enforceability of non-compete agreements varies by state, and it`s important to carefully review the terms of the contract and seek legal guidance before signing or breaking the agreement.