Non-Compete Agreement

A Non-Compete Agreement restricts an employee from entering into competition with their employer during or after employment, preventing them from working for competitors or starting a competing business.

Common Clauses

• Specific description of competitive business activities prohibited
• Geographic region where competitive restrictions apply
• Duration of the restrictive covenant post-termination
• Consideration (financial compensation or job offer) for signing
• Remedies for breach, such as injunctions and damages

Common Red Flags

• Unreasonable geographic scope extending globally or to regions where the company does not operate
• Excessive duration periods extending for multiple years
• Broad definitions of 'competition' that prevent working in unrelated roles within the same industry
• Lack of specific compensation for the restriction period

Questions To Ask Before Signing

• Can we narrow the geographic area or restrict the list of competitor firms?
• Is there compensation provided during the non-compete period (e.g. garden leave)?
• Does this restriction apply even if I am laid off without cause?
• Does this prohibit freelance or advisory work done on my own time?