A non-compete agreement is a contractual agreement between an employer and employee which restricts the employee`s ability to work for a competitor or start their own competing business for a certain period of time after leaving their current employer. Standard non-compete agreements typically have a duration of one to three years and apply to a specific geographic area.

The purpose of a non-compete agreement is to protect a company`s trade secrets, confidential information, and customer relationships from being exploited by former employees. However, many states have restrictions on the enforceability of non-compete agreements, and some states prohibit them altogether.

To ensure that a non-compete agreement is enforceable, it is essential that the agreement is reasonable in scope and duration. The agreement should also provide a clear definition of what constitutes a competing business, and should specify the geographic area where the employee is restricted from working.

When drafting a non-compete agreement, it is also important to consider the employee`s job responsibilities, as the scope of the agreement should be tailored to the employee`s position. For example, a salesperson may have access to customer lists and confidential pricing information, and may require a more comprehensive non-compete agreement than an administrative assistant.

It is also important to note that non-compete agreements are not always necessary or appropriate for all employees. For example, it may not be necessary for a company to require a non-compete agreement for an entry-level position with no access to confidential information or trade secrets.

In conclusion, non-compete agreements can be an effective tool for protecting a company`s trade secrets and customer relationships, but they must be carefully crafted to ensure enforceability and compliance with state laws. It is important for employers to work with experienced legal counsel when drafting non-compete agreements and to consider the specific job responsibilities of the employee before implementing such an agreement.