Non-Compete
A restriction on working for or starting a competing business.
What it means
A non-compete clause restricts a person or company from competing with the other party — typically for a set time, in a set geography, in a defined line of business — after the contract or employment ends. Enforceability varies dramatically by state: some enforce reasonable non-competes, others limit them sharply or refuse to enforce them against most workers at all.
Why it matters before you sign
A non-compete can limit how you earn a living after this deal ends — read the duration, the geography, and the definition of 'competing' before you sign, and remember that what is enforceable varies by state.
In a contract, it looks like this
For twelve months after termination, the employee will not provide competing services within the county where the company operates.
This definition is a general, educational explanation — not legal advice. XOsign provides AI-assisted document tools and does not provide legal advice; consider consulting a qualified attorney for guidance on your specific situation. Requirements vary by state.
See any term explained in your own document.
Upload an agreement and XOsign walks you through every clause in plain language — before you sign, not after.