noncompete clauses

Noun

noncompete clause (plural noncompete clauses)

1. A provision within a business agreement or employment contract which stipulates that the contracting party must abstain from competitive practices not in the interests of an identified firm, such as starting a competing business or accepting a job with a competitor, and often extending for a period of time after the termination of the original employment or other business relationship.
   • Lee is just one of a series of execs who have bolted slow-growing Microsoft in the last year for the bright lights of Google. . . . Microsoft turned to its lawyers, accusing Lee of violating his noncompete clause.2005 July 21, Jay Greene, “Microsoft Sues over Google's Hire”, in Businessweek, retrieved 22 Sep 2010

   Synonyms:

   non-compete, noncompete, NCC