Non-Compete Agreement

An agreement between two parties, typically an employee and employer, where the employee agrees not to use information learned during employment in subsequent business efforts for a set period of time. Employers usually insist on non-compete agreements because of the possibility of an employee, upon termination or resignation, working for a competitor or starting a business, and gaining competitive advantage by abusing confidential information about their former employer's trade secrets or sensitive information such as customer/client lists, business practices, upcoming products and marketing plans.

In some states, non-compete agreements are extremely difficult to enforce. Some jurisdictions, such as the state of California, do not allow non-compete-clauses at all. A very popular example of a non-compete agreement dispute is the case of Kai-Fu Lee, a Google executive who used to work for Microsoft. In this case, Kai-Fu Lee left Microsoft and started working for Google within one year of a signed non compete agreement..




Investment dictionary. . 2012.

Look at other dictionaries:

  • non-poaching agreement — Also known as a non solicitation agreement. It stops one party from approaching, for example, the employees, customers or clients of the other. + non poaching or non solicitation agreement A non poaching or non solicitation agreement stops one… …   Law dictionary

  • Non-disclosure agreement — A non disclosure agreement (NDA), also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy agreement, is a legal contract between at least two parties that… …   Wikipedia

  • Non-compete clause — Contract law Part …   Wikipedia

  • non-compete — UK US adjective [before noun] ► LAW, HR used to describe an agreement that prevents an employee who leaves a company from working for another company involved in the same activity for a particular period: »There is a six month non compete clause… …   Financial and business terms

  • non-competition — UK US (also noncompetition) adjective [before noun] ► LAW, HR used to describe an agreement that prevents an employee who leaves a company from working for another company involved in the same activity for a particular period: »a non competition… …   Financial and business terms

  • non-solicitation — USA A covenant which prohibits one party from soliciting the employees or customers of another party during a specified period of time. + non poaching agreement or non solicitation agreement United Kingdom …   Law dictionary

  • Non-English press of the Communist Party USA — This article is about publications of the Communist Party USA in languages other than English. For a similar list of the party s English language publications, see English language press of the Communist Party USA. During the nine decades since… …   Wikipedia

  • Dominican Republic – Central America Free Trade Agreement — Note: Within this article, CAFTA refers to the agreement as it stood before January 2004, and DR CAFTA is used after that. The Dominican Republic ndash; Central America Free Trade Agreement, commonly called DR CAFTA, is a free trade agreement… …   Wikipedia

  • Tobacco Master Settlement Agreement — The Tobacco Master Settlement Agreement (MSA) was entered in November 1998, originally between the four largest US tobacco companies and the attorneys general of 46 states. The states settled their Medicaid lawsuits against the tobacco industry… …   Wikipedia

  • Dominican Republic–Central America Free Trade Agreement — Presidents Francisco Flores Pérez, Ricardo Maduro, George W. Bush, Abel Pacheco, Enrique Bolaños and Alfonso Portillo Note: Within this article, CAFTA refers to the agreement as it stood before January 2004, and DR CAFTA is used after that. Th …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.