Non-Compete Agreement

A non-compete agreement is a contract that prohibits an employee or contractor from engaging in a competing business or activity during or after their employment or engagement. In construction, a non-compete agreement may be used to protect a company’s confidential information, trade secrets, customer relationships, or market share from being used or disclosed by a former employee or contractor. The agreement typically includes the definition of the restricted activities, the geographic and temporal scope of the restriction, the exceptions or exemptions, and the consequences of a breach. The purpose of a non-compete agreement is to safeguard a company’s competitive advantages, investments, and goodwill, and to prevent unfair competition or unjust enrichment by a departing employee or contractor. A non-compete agreement should be carefully tailored to the specific needs and circumstances of the company and the individual, and should be reasonable in scope and duration to be enforceable under the applicable laws.