What is a non-compete agreement?

Minneapolis employment law attorney Marnie DeWall explains that a non-compete agreement typically states that an employee will not leave and work for a competitor.

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A non-compete agreement in its most traditional sense is an agreement between the employee and the employer typically entered into at the inception of employment that prevent the employee for some period of time after employment from working for a competitor. Now, that’s a traditional non-compete, typically in those types of agreements there’s also a non-solicitation clause that prevents the employee, again, for some period of time after leaving employment from soliciting the former employer’s customers, vendors, and other types of business relationships. Those agreements also will often have in them a confidentiality agreement as well that prevents the former employee from revealing confidential information of the former employer.