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4 types of ‘non-compete’ agreements you may face

Many people use the term “non-compete” interchangeably when referring to any employer-based restrictive covenant, and the possible disputes or contractual issues that may arise from one. In fact, this term is only one part of four main types of stipulations often found in employee contracts, and it’s important to know which one applies to you.

Being clear about which types of conditions you have agreed to and precisely what it can and cannot do for your work contract may help clear up a lot of time and confusion, and make the path forward with contract disputes more clear.

4 types of restrictive covenants you should know

  • Non-compete: the inability of working for a competitor company in the same field or starting a new business in the same field as an ex-employer.
  • Non-solicitaion of customers: the inability to sell to or work with any customers from the ex-company or ex-employer.
  • Non-soliction of employees: Also known as anti-raiding or “no hire” stipulations, this prevents anyone from taking employees from their ex-company and enticing them to a new company or working for a competitor.
  • Confidentiality or non-disclosure: The inability to share about confidential information, trade secrets, company-specific details or proprietary disclosures.

Knowing what agreements are in an employee contracts and if any infractions to this have occurred is the first step in being ready for claims or issues coming up, and navigating through them appropriately. Talking with an attorney experienced in business law and contract disputes can set you on the right track.

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