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What limits come with signing a non-compete?

I'm worried about what I'm giving up. Does this clause restrict my side work, or my ability to start a new business?

Answer

A Noncompete Agreement can limit your ability to work in certain jobs, start a competing business, or take on related side work for a period of time. The exact limits depend on the wording of the agreement and your state's laws.

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.

Pro Reviewed
Published on 04/05/2026
Reviewed by Pamela K. Streng, Esq.

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced attorneys to ensure legal accuracy.

Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask an Attorney.

Laura Bojart
Laura Bojart
Editorial Researcher and Copywriter

Laura Bojart is an SEO copywriter and editor at Rocket Lawyer. She researches legal and business topics and translates complex ideas into clear, practical content for everyday readers. With her background in journalism and endless curiosity, she approaches each subject by asking the questions readers are likely to have first, making legal information approachable and easy to understand even to those with no legal background.