One in five U.S. workers are covered by non-competition and non-solicitation agreements
Non-competition and non-solicitation agreements are designed to protect employers from unfair competition by a former employee, and they are no longer just for CEOs and other highly paid professionals.
Non-compete and non-solicitation agreements are now being used for lower-wage employees such as janitors.
A non-compete prevents an employee from working for an employer’s competitor or starting a competing business for a set period of time, typically between one to two years, and within a designated geographic area, such as within a city or county limit. A non-solicitation agreement is slightly different: it prevents the employee from soliciting business from the employer’s customers or soliciting the employer’s other employees to join the competitor, typically for the same time period as the non-compete. These agreements also prevent an employee from taking the employer’s valuable information, including its trade secrets, customer lists and pricing information.