Non-compete red flags

Non-Compete Red Flags: What to Look for Before Signing

A non-compete can affect your next job, clients, income, and leverage after a relationship ends. Even where enforceability is limited, broad language can still create friction.

Use this page to spot the scope questions before you agree. Use the analyzer below with a sample clause, or paste the exact clause you were given.

Analyze a non-compete sample Read FAQ

Quick answer

Non-competes are about time, place, work, and restricted parties

Review non-competes for duration, geography, covered services, competitor definition, restricted clients, non-solicit terms, penalties, consideration, and local enforceability.

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Analyze a non-compete clause

Start with this broad sample restriction, then replace it with the exact non-compete, non-solicit, or mobility clause you were given.

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What to check first

Break the restriction into the basic questions a court, employer, or future client might care about.

  • Duration of the restriction after employment, contract, sale, or partnership ends.
  • Geographic area and whether remote work or online services are included.
  • Covered roles, services, industries, products, clients, and competitor definition.
  • Non-solicit, non-dealing, confidentiality, and employee-poaching restrictions.
  • Penalties, injunction rights, attorney fees, severance, and consideration.

Common non-compete red flags

The broader the restriction, the more it can interfere with future work.

  • No clear geography or a worldwide restriction for a local role.
  • Long duration with no narrow business justification.
  • Covers any work for a competitor, even unrelated roles.
  • Restricts potential markets where the company merely plans to operate.
  • Combines non-compete, non-solicit, and confidentiality in one broad clause.

Before you sign

Non-compete rules are changing in many places, so local advice matters.

  • Ask whether the restriction can be narrowed to specific clients or duties.
  • Clarify whether severance or garden leave applies during the restricted period.
  • Do not assume unenforceable means harmless; disputes can still be costly.

Non-compete FAQ

Are non-competes enforceable?

It depends on jurisdiction, role, compensation, timing, and current law. Some are banned or restricted, while others may still be enforced or negotiated.

What makes a non-compete too broad?

Common signs include long duration, wide geography, vague competitor definitions, unrelated job restrictions, and restrictions beyond legitimate business interests.

Is a non-solicit the same as a non-compete?

No. A non-solicit usually restricts contacting clients, employees, or prospects, while a non-compete restricts working in certain roles or markets.

Can a contractor have a non-compete?

Some contractor agreements include them. Enforceability and classification risk depend on local law and the facts.

What should I ask to change?

Ask to narrow time, geography, covered services, competitor definition, client scope, and remedies. Consider replacing it with confidentiality or non-solicit language.