Non-Compete Clause

A non-compete clause restricts someone (often an employee, founder, or seller of a business) from competing against the other party for a defined period within a defined geography. The aim is to protect a company's customers, trade secrets, and investment from being used directly against it.

Enforceability varies a great deal by jurisdiction. Some states limit non-competes sharply or ban them for most workers, and courts often narrow ones they consider too broad in time or scope. Because the governing law drives what is enforceable, the same clause can hold in one state and fail in another. It is frequently paired with a non-solicitation clause.