Non-Compete Agreement
A contract clause that restricts an employee from working for a competitor or starting a competing business for a defined period after leaving a company.
A non-compete agreement (NCA) is a contractual provision that prevents an employee from joining a direct competitor or establishing a competing business for a specified period (typically 6–24 months) after their employment ends. Non-competes are intended to protect a company's proprietary information, client relationships, and competitive advantage.
The enforceability of non-compete clauses varies widely by jurisdiction. In some US states — including California, Minnesota, and North Dakota — non-competes are almost entirely unenforceable for regular employees. In the EU, non-competes are generally permissible but must be reasonable in scope, duration, and geography, and may require financial compensation for the restricted period.
For remote workers, the geographic scope of non-competes is particularly contested. A clause preventing someone from working in "any competing business" without geographic limitation may be challenged as unreasonably broad when the employee works from home and has no local client relationships to protect.