A non-compete clause (NCC), or also called covenant not to compete (CNC), is a clause under which one party mainly employee agrees not to enter into or start a similar profession or trade in competition against another employer. Some courts refer to these as “restrictive covenants.” As a contract provision, a CNC is bound by traditional contract requirements including the consideration doctrine.
In order to be considered valid, a non-competition agreement must: 1)Be supported by consideration at the time it is signed; 2)Protect a legitimate business interest of the employer; 3)Be reasonable in scope, geography, and time.