What is the main purpose of a non-compete agreement?

The main purpose of a non-compete agreement is to prohibit a former employee from working for a competitor. This type of agreement is designed to protect a company's competitive business interests by preventing employees from joining rival firms or starting their own competing businesses for a specified period and within a defined geographic area after leaving the company.

By enforcing non-compete agreements, employers aim to safeguard their proprietary information, trade secrets, and other sensitive business strategies that employees might otherwise take to competitors, thereby protecting the company's market position. This element is crucial for maintaining the competitive edge and ensuring that employees do not utilize the knowledge and insights gained during their tenure to benefit competitors.