Non-Compete — Plain-English Summary
A non compete clause restricts where and for whom you can work after leaving a company. Whether any given non compete clause is enforceable depends heavily on state law, your role, and the scope of the restriction. Paste a non-compete below and get a plain-English summary of the five most common red flags, the clauses typically expected on a standard version, and notes on where state law often changes the picture — in about 30 seconds. Informational only — for anything binding, consult a licensed attorney in your state.
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Five red flags we see most often in a non-compete
None of these are automatically deal-breakers — context and negotiating leverage matter. But if you see one on a draft, it's worth pushing back or escalating to counsel.
- 1Geographic scope defined as 'anywhere the company does business' rather than a defined territory.
- 2Time periods longer than the typical enforceable window (most states cap somewhere between 6–24 months).
- 3Activity restrictions broader than the employee's actual role.
- 4No consideration beyond continued at-will employment — some states require separate consideration.
- 5Choice-of-law clauses designed to dodge employee-friendly states.
Three clauses you should expect on a fair non-compete
If any of these are missing or written vaguely, that alone is worth asking about.
- 1A defined restricted period (typically 6–24 months).
- 2A defined geographic area.
- 3A defined scope of prohibited activity tied to the role.
State-specific variation on a non-compete
Non-compete law is the most state-specific contract area. California, Oklahoma, North Dakota and Minnesota (among others) broadly ban them. The FTC non-compete rule status continues to evolve. Check your state attorney general before signing.
BeforeSigning is not legal advice and does not create an attorney-client relationship. For anything binding, consult a licensed attorney in your state.
Terms to know before you read a non-compete
Three terms that come up repeatedly in non-compete drafts. Knowing these is the difference between skimming past a real issue and catching it.
- Non-Compete Clause →
A non-compete clause restricts you from working for competitors or starting a competing business for a set time and geographic area after leaving.
- Severability →
A severability clause says that if one part of a contract is found unenforceable, the rest of the contract still stands.
- Merger Clause →
A merger clause (or integration clause) states that the written contract is the complete and final agreement, overriding any prior discussions or side promises.