Noncompete


Noncompete

A provision in a number of employment contracts that prohibits an employee from working for a competing firm for a specified number of years after the employee leaves the firm.

Noncompete

Describing a clause in many employment contracts forbidding an employee from working for another firm that competes with the employer for a certain number of years after the termination of the contract. A noncompete clause may have a geographic limit. For example, a dentist who goes to work for corporate dental practice may sign a noncompete clause forbidding him from working for a competing dental practice within 25 miles for five years after the completion of the contract.