Definition:
A non-compete covenant is a legal document that ensures that an employee will not compete against an employer or former employer. Since competitors often recruit each other's employees hoping to gain an advantage, these covenants are especially important. Without such a covenant, a top salesperson leaving to work for a competitor may be able to take a list of important clients, thus harming the business of the original employer.
Related Terms:
Trade Secrets
Intellectual Property
Trademark
Related Information:
U.S. Department of Labor Definition of a Trade Secret
Intellectual Property
Legal Resources for Small Businesses
Related Books:
Nondisclosure Agreements: Protect Your Trade Secrets and More
Protecting Your Company's Intellectual Property: A Practical Guide to Trademarks, Copyrights, Patents & Trade Secrets
More Books about Business Law
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