What is a non-competition agreement?
This type of agreement seeks to prevent ex-employees from competing with a company for a certain amount of time after they've left the business. This can cover stopping someone from setting up a rival business - or even, in some cases, working for a rival business in a similar role.
Where have you heard about non-competition agreements?
Non-competition agreements preventing low-wage workers from working for rival businesses after they've left a company have proved highly controversial in the US.
What you need to know about non-competition agreements.
These types of agreements, also known as non-compete clauses and non-compete agreements, are becoming more common as the workforce becomes more mobile and confidential information gets easier to copy. They usually cover a limited geographical area and are enforceable only for a set amount of time. It's worth bearing in mind that non-competition agreements can be challenged in court, and that they are can't protect a business from ordinary competition; they are only designed to do so in as far as they protect legitimate business interests.