Non-compete covenants are most often entered into between employers and employees or business partners. Enforceability of these contracts varies among the states so if you are considering utilizing either, it is recommended that you contact an attorney in your local jurisdiction.
Non-Compete Covenants
The purpose of a non-compete covenant is to ensure that an employee will not compete against an employer or former employer. Since competitors often recruit each other’s employees hoping to gain an advantage, these covenants are especially important. Without such a covenant, a top salesperson leaving to work for a competitor may be able to take a list of important clients, thus harming the business of the original employer.