Salary FYI

Non-Compete Clause

Employment

A contractual provision that restricts an employee from working for a competing business or starting a competing venture for a specified period and geographic area after leaving the employer.

## Non-Compete Clause

A non-compete clause (NCC, also called a restrictive covenant) limits an employee's ability to work for competitors after leaving a company.

### Typical Terms

| Parameter | Common Range |
|-----------|-------------|
| Duration | 6–24 months |
| Geographic scope | City, state, country, or global |
| Industry scope | Direct competitors or broader |
| Garden leave pay | Some jurisdictions require it |

### Enforceability

| Jurisdiction | Enforceability |
|-------------|----------------|
| California | Banned (void, unenforceable) |
| Colorado, Minnesota, Oklahoma | Mostly banned |
| Most US states | Enforceable if reasonable |
| Germany | Enforceable if compensated (Karenzentschädigung: 50% of salary) |
| UK | Enforceable if reasonable |
| FTC proposed rule (US) | Would ban most non-competes (pending legal challenge) |

### Impact on Compensation

Non-competes constrain job mobility, which can suppress salary growth. California's ban on non-competes is considered a factor in Silicon Valley's talent dynamism.