Non-compete agreement
IN PLAIN ENGLISH

Describes which companies or industries you're prohibited from joining. Some non-competes define competitors narrowly (e.g., "any company that sells X product in Y market"); others define them so broadly that almost any job in your field would violate the agreement. The broader the definition, the harder it is to find compliant work — and the more likely a court is to narrow or void the clause.

Specifies where the restriction applies. A non-compete might cover a city, a state, a region, the entire US, or "anywhere the company does business" (which, for a global company, could mean everywhere). Courts are more likely to enforce non-competes with a geographic scope that matches where you actually worked and where the company has a real competitive interest.

How long the restriction lasts after you leave. One year is common; two years is often the upper limit courts will enforce without pushback. Anything longer than two years is unusual and may be unenforceable in many jurisdictions. Some non-competes tie the duration to how long you were employed — the longer you stayed, the longer the restriction.

A promise not to solicit or do business with the company's customers after you leave. This is often bundled with the non-compete or presented as a separate clause. Non-solicits are generally more enforceable than non-competes because they're narrower: you can still work for a competitor; you just can't chase the specific customers you worked with.

A promise not to recruit or hire your former colleagues for a competitor or your own venture. Like customer non-solicits, these are common and often enforceable. The scope matters — a ban on "soliciting" employees you worked closely with is different from a blanket ban on hiring anyone from the company.

A reminder (or a new obligation) that you can't use or disclose the company's confidential information or trade secrets after you leave. This overlaps with non-compete goals but is legally distinct — trade-secret law protects companies even without a non-compete. Some agreements blur the line and try to define ordinary business knowledge as a "trade secret," which is a red flag.

A clause that says anything you create during employment — and sometimes for a period after — belongs to the company. This isn't technically part of the non-compete, but it often appears in the same agreement and affects what you can do next, especially if you're planning to start your own company.

A provision that requires you to give extended notice (often 3-6 months) before leaving, during which you remain employed and paid but are not actively working. Garden leave reduces the sting of a non-compete — you're getting paid to sit out — but it also means you can't start your next job right away even if it wouldn't otherwise violate the agreement.

What you're getting in exchange for signing. For new hires, the job itself is usually sufficient consideration. For existing employees asked to sign a non-compete mid-employment, courts in some states require something extra — a raise, a bonus, a promotion — beyond just "you get to keep your job." If you're being asked to sign without any new benefit, the enforceability may be weaker.

Specifies which state's law governs the agreement and where disputes will be heard. Employers sometimes try to choose a state more favorable to non-competes than where you actually work. Courts don't always honor this — they may apply the law of the state with the strongest connection to the employment relationship — but it creates uncertainty and legal expense.

Language that says the company can get a court order (an injunction) to stop you from violating the agreement, without having to prove actual damages first. This is standard but worth noting: the company's first move if you take a competing job will likely be a demand letter followed by a motion for a temporary restraining order.