What limits come with signing a non-compete?

What activities can a non-compete restrict?

Many non-competes try to stop you from creating direct competition with a former employer. This may include:

• Working for a competitor in the same market.
• Starting a business that offers similar products or services.
• Doing freelance or side work that overlaps with the company's work.

If your new role could take customers or revenue from your former employer, it may fall within the restriction.

What other limits often come with it?

Non-competes are often paired with other restrictions, such as:

• No solicitation of clients, even ones you previously worked with.
• No recruiting former coworkers.
• No sharing confidential information or trade secrets.

Courts usually review the time limit, geographic area, and scope of work. If the restrictions are too broad, they may not be enforced.

What to do next

• Read the agreement closely for time, location, and job limits.
• Check your state's laws on enforceability.
• Consider how it affects side work or future plans.
• Ask for narrower terms if the limits seem too broad.

What to consider in your specific situation

The general rules above can help you understand what non-competes usually cover, but the details often vary. Your own situation may depend on factors like:

• The exact wording of your non-compete and any related confidentiality or non-solicitation clauses.
• Your state's rules, since some states limit or even ban certain kinds of non-competes.
• The size and nature of your industry, and whether your new work truly counts as "competition".
• Any verbal agreements, emails, or past practices that might clarify expectations.
• How much access you had to confidential information or key clients.
• The level of risk or conflict both you and your former employer are willing to take on.

Every non-compete is different, so consider getting more information through Rocket Copilot, or a Legal Pro review to move forward with clarity and confidence.