Employment and Labor Relations Law Glossary Terms

Non-Compete Clause

A phrase that is sometimes included in employment contracts restricting the amount of time during which a former employee promises not to directly compete with the company after leaving that company. In addition to non-compete provisions, other restrictive covenants, as they are sometimes called, include non-solicitation provisions, in which employees agree not to contact customers or co-workers for a pre-determined amount of time following employment, and non-disclosure or confidentiality agreements, in which employees agree to protect the confidentiality of information that the company has developed and made available to employees to aid them in performing their jobs.

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