non-compete
/ˌnɒn kəmˈpiːt/
CommonA contract clause that restricts where you can work after leaving a company.
Enforcement varies sharply by state and country. California effectively bans them. Despite this, many workers treat non-competes as binding and limit their job search unnecessarily. The knowledge gap is a significant power asymmetry.
Real-world examples4 examples
| # | Example | What it means | Source |
|---|---|---|---|
| 01 | job offer requires signing a two-year non-compete. in california. they know that's not enforceable right? | The company is asking for a clause that cannot legally hold in the state they are in. | x, 2024 |
| 02 | got laid off and they want me to sign a non-compete to get my severance. no. negotiate that out. | The company is conditioning severance on accepting a post-employment restriction. | reddit, 2024 |
| 03 | everyone has a non-compete but almost no one gets sued over it. talk to a lawyer before you panic. | The existence of the clause is far more common than actual enforcement. | reddit, 2023 |
| 04 | FTC banned most non-competes last year. check if yours is still valid. | A regulatory change may have made many existing clauses unenforceable. | x, 2024 |
Use it when
- Discussing whether you can take a job at a competing company.
- Asking whether the clause in your contract is enforceable.
- Negotiating to have the clause removed from a severance agreement.
Do not use it when
- You mean an NDA (non-disclosure agreement).Use “NDA” instead.
- You mean a no-poach agreement between companies.
Variations and related forms
Non-compete vs garden leave
non-compete
A non-compete restricts your options after leaving, usually without compensation.
VS
garden-leave
Garden leave pays you for the equivalent period of not working for a competitor.
Origin and context
Legal term from contract law. Became widely discussed by tech workers as non-competes spread beyond executives to individual contributors, and as regulatory challenges to them grew in the 2020s.
- First seen
- 19th century
- Confidence
- medium
Cite this page
Use this stable URL to reference the entry.
https://slang.fyi/non-competeUpdated: 2026-08-29License: CC BY 4.0