What is Non-Compete Agreement?
A non-compete agreement is a contract that restricts an employee from working for a competing employer, or starting a competing business, for a defined period and geographic area after leaving a company.
Why does Non-Compete Agreement matter?
Non-competes affect how freely candidates can move between employers in the same industry, which matters directly to recruiters sourcing candidates who may be bound by an existing agreement with their current employer.
How does Non-Compete Agreement work?
Enforceability varies significantly by state, with some states banning most non-competes outright and others enforcing them if they are reasonable in scope, duration, and geography; recruiters and candidates should review the specific terms and applicable state law before assuming a non-compete is binding.
Frequently asked questions
Are non-compete agreements enforceable everywhere?
No, enforceability varies widely by state, and several states have banned or significantly restricted them, so a candidate’s specific state and agreement terms both matter.
What should a recruiter do if a candidate has a non-compete?
Advise the candidate to have the agreement reviewed by an employment attorney rather than assuming it is or isn’t enforceable, since this is a legal question outside a recruiter’s scope.
How BrightMove helps
BrightMove keeps a clear, timestamped candidate record throughout hiring, useful documentation when non-compete questions come up during sourcing. Explore BrightMove for staffing agencies.