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A non-compete agreement is a contract that restricts an employee from working for competitors or starting a competing business for a specified period and geographic area after leaving employment.
Enforceability varies by jurisdiction. Many US states limit or ban non-competes. Courts generally require the restrictions to be reasonable in scope, duration, and geography.
Most enforceable non-competes last 6–24 months. Longer periods are often struck down by courts as unreasonably restrictive.
A non-compete prevents working for competitors. A non-solicitation agreement prevents approaching the employer's clients or employees, but does not restrict employment elsewhere.
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