Non-Compete Clause
A contractual restriction preventing a party — usually an employee or seller of a business — from competing with the other party for a defined period and within a defined geographic area.
What it means
Non-compete clauses restrict an employee, contractor, or business seller from working for competitors or starting a competing business. Enforceability varies dramatically: California voids most non-competes under Bus. & Prof. Code § 16600; the FTC Non-Compete Rule (2024) sought to ban most employee non-competes federally, with court challenges ongoing; most other states enforce them only if reasonable in scope, duration, and geography.
State-by-state
Non-Compete Clause is treated differently depending on jurisdiction. These guides cover the state-specific statutes and disclosures: