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It is a document, that once signed by the employee, guarantees that they will not work for a competing business once their employment relationship ends. An employer would issue this document to protect information or skills that could be beneficial to their competitors.
Noncompetition provisions typically prevent former employees from working for a competitor within a certain distance (e.g., 15 miles) for a set period of time (e.g., three years). Restrictive covenants may also protect confidential information, such as patient lists.
Often, they're included in an initial offer of employment; in Washington, non-compete clauses aren't valid after initial employment unless you're given ?independent consideration.? Typically, that means a raise or non-monetary compensation like stock options.
Employee agrees that for _____ [months/years] after Employee is no longer employed by the Company, Employee will not directly or indirectly solicit, agree to perform or perform services of any type that the Company can render ("Services") for any person or entity who paid or engaged the Company for Services, or who ...
The long-awaited Washington, D.C. non-compete and anti-moonlighting law finally went into effect on Oct. 1, 2022. At the end of 2020, the Washington, D.C. Council passed the Ban on Non-Compete Agreements Amendment Act of 2020.
Prohibition on non-compete provisions for covered employees. "(a)(1) Beginning October 1, 2022, no employer may require or request that a covered employee sign an agreement or comply with a workplace policy that includes a non-compete provision.
Non-compete clauses were tough to enforce in Canada under common law well before Ontario became the first jurisdiction in the country to expressly outlaw them in most circumstances, through the Working for Workers Act in 2021.