What is a "Non-Compete Agreement?"
Non-compete agreements, also known as "non-competition agreements" are used by business to preclude competition by employees if the employee should leave employment and go out to work independently or for a competing business. These agreements - sometimes wrapped up in an employment agreement as a specific clause - prevent the restricted party from working in the same field for a period of time and within a certain distance. In a non-compete agreement (or clause) one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition against another party (usually the employer). Some courts refer to these as "restrictive covenants."
The use of such clauses is premised on the possibility that upon their termination or resignation, an employee might begin working for a competitor or starting a business, and gain competitive advantage by exploiting confidential information about their former employer's operations or trade secrets, or sensitive information such as customer/client lists, business practices, upcoming products, and marketing plans.
Quite frankly, enforceability depends on a number of things such as jurisdiction, how broadly the agreement or clause is written, the reasonableness of the geographic limitation, and whether the restricted party can still make a living. THE RATLIFF LAW FIRM | Business Law Professionals.
Cedar Bluff, Virginia (276) 522-1220
Bluefield, West Virginia (304) 716-4167
Weston, West Virginia (304) 406-7410 www.ratlifflaw.net