What is Non-Compete Clause?
Quick answer
A non-compete clause restricts you from working for competitors or starting a competing business for a set time and geographic area after leaving.
A non-compete clause restricts you from working for competitors or starting a competing business for a set time and geographic area after leaving. Enforceability varies widely by state and role.
Examples
- A 12-month, 50-mile non-compete on a software engineer.
- A non-compete tied to equity vesting in a co-founder agreement.
- Many states (CA, ND, OK) largely refuse to enforce employee non-competes.
Why this matters
BeforeSigning flags overly broad non-competes — the kind that would follow you across industries or across the country — before you sign.
Read more in our guides
- How to negotiate a severance package (2026): scripts, clause-by-clause review, and a counter-offer template
- Should I Sign a Non-Compete? (5 Questions to Ask First)
- The 11 contract clauses that cost freelancers and renters the most money in 2026
Frequently asked questions
What is 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. Enforceability varies widely by state and role.
When does Non-Compete Clause matter?
BeforeSigning flags overly broad non-competes — the kind that would follow you across industries or across the country — before you sign.
What's an example of Non-Compete Clause?
A 12-month, 50-mile non-compete on a software engineer. A non-compete tied to equity vesting in a co-founder agreement. Many states (CA, ND, OK) largely refuse to enforce employee non-competes.
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