{"id":5564,"date":"2021-08-12T09:00:30","date_gmt":"2021-08-12T14:00:30","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/what-is-a-non-compete-agreement.html"},"modified":"2026-05-20T02:02:00","modified_gmt":"2026-05-20T07:02:00","slug":"what-is-a-non-compete-agreement","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-non-compete-agreement.html","title":{"rendered":"What Is a Noncompete Agreement?"},"content":{"rendered":"\n
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What Is a Noncompete Agreement?<\/h1>\n\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last reviewed\n
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A noncompete agreement is a restrictive covenant between an employer and employee that prohibits the worker from working with a competitor\u2019s business during or after their employment for a specified period of time. Noncompete agreements protect a company\u2019s intellectual property, trade secrets, and confidential information.<\/p>\n\n <\/div>\n\n\n\n

Noncompete agreements<\/span> can help business owners<\/span> protect their interests. These agreements are also called\u00a0restrictive covenants<\/span><\/a>\u00a0or covenants not to compete. The purpose of a noncompete agreement<\/span> and noncompete clauses<\/span> between an employer and an employee is to ensure that the employee can\u2019t take confidential information<\/span> that they learned during their employment to a competitor.<\/p>\n

A noncompete agreement<\/span> could benefit your small business if\u00a0employees or independent contractors<\/span><\/a>\u00a0gain information about your processes and techniques. When workers leave, you don\u2019t want them to take your information to a competitor who can use it to gain a competitive edge. The employee could also use the information to become your competitor if you don\u2019t have a noncompete contract.<\/p>\n

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Key Takeaways<\/h2>\n