Non-Compete Agreement
A contract restricting an employee from working for competitors or starting a competing business for a specified time and geographic area after leaving a job.
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Detailed Explanation
Non-compete enforceability varies dramatically by state. California bans most non-competes. Other states enforce reasonable restrictions (typically 1-2 years, limited geography). The FTC proposed a federal ban on most non-competes in 2024. Attorney costs to review or negotiate a non-compete: $500-$2,000. Litigation to enforce or challenge a non-compete: $10,000-$50,000+. Having an attorney review before signing can save future headaches.
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