Employment agreements often include restrictions that continue after you leave. Understanding the differences helps you know what you can and cannot do.
Non-compete
Prevents you from working for a competitor or starting a competing business for a time and area. Enforcement varies by state, and some states largely ban them.
Non-solicitation
Prevents you from recruiting coworkers or soliciting customers. Courts are often more willing to enforce these if they are reasonable in scope and time.
Confidentiality (NDA)
Prevents you from disclosing trade secrets and confidential information. Confidentiality duties can last longer, but cannot stop you from reporting unlawful conduct or discussing certain employment terms.
What to do
- Read all agreements before you sign.
- Ask for changes to overly broad terms.
- Keep copies.
- Before leaving, review what you signed with a lawyer.
- Do not take confidential files or customer lists.
Frequently asked questions
Which is easiest to enforce?
Confidentiality and narrow non-solicitation clauses are often easier to enforce than broad non-competes.
Can they apply if I am laid off?
It depends on the contract and state law.