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.
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.
Some states, like California, do not enforce non-compete agreements.
Business terms
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