![]() Contemporary case law permits exceptions, but generally will only enforce CNCs to the extent necessary to protect the employer. English common law originally held any such constraint to be unenforceable under the public policy doctrine. However, an over-broad CNC may prevent an employee from working elsewhere at all. ![]() The use of such clauses is premised on the possibility that upon their termination or resignation, an employee might begin working for a competitor or start a business, and gain competitive advantage by exploiting confidential information about their former employer's operations or trade secrets, or sensitive information such as customer/client lists, business practices, upcoming products, and marketing plans. As a contract provision, a CNC is bound by traditional contract requirements including the consideration doctrine. ![]() Some courts refer to these as "restrictive covenants". In contract law, a non-compete clause (often NCC), restrictive covenant, or covenant not to compete ( CNC), is a clause under which one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition against another party (usually the employer). ![]()
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