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compete agreement is a contract between two parties, usually two individuals or one company and one individual, in which one of the individuals promises not to compete with the other individual or company once their relationship with the company has ended.
Covenants not to compete are frequently enforced to prevent a former employee from soliciting his or her former customers to buy competing products or services from the new employer.
The well-known general rule is that a covenant not to compete is only enforceable if its terms are reasonable and necessary to protect the legitimate business interests of the employer.
Many employers ask or require employees to sign non-compete agreements in addition to an employment contract. These are contracts, governed by state law, in which an employee promises not to work for a direct competitor for a specific period of time after leaving the employer.
California law bars covenants not to compete in nearly all circumstances.
compete agreement is only used between an employee and a business to specify who may hire them should they leave the company. An NDA is much broader and is used to protect any personal or businessrelated information that one or both parties want to remain confidential.