Non-compete agreement
Updated: 12/31/2022 by Computer Hope
A non-compete clause or non-compete agreement is an agreement between an employee and employer that prevents the employee from working for a competitor during and after employment. Employees found breaking the agreement could be held liable for damages.
These agreements were created to help protect a company from losing its trade secrets and other confidential information to a competitor. However, many argue that these agreements hurt the employee because they can prevent them from moving to a higher-paying job.
Note
Some states, like California, do not enforce non-compete agreements.
How long to wait before working for a competitor
The time required for an employee to wait to work for a competitor depends on the agreement. Many companies require between six months and a year.