What does a noncompete agreement typically restrict?

A noncompete agreement is designed to limit an employee's ability to work for competitors after leaving a job. This type of agreement aims to protect a company's trade secrets, proprietary information, and customer relationships by preventing former employees from joining rival organizations that might leverage this knowledge to gain a competitive advantage. Such restrictions usually specify a certain duration and geographic area during which the employee is prohibited from seeking employment in similar roles within the same industry. By focusing on preventing competition in this way, noncompete agreements are a proactive measure taken by employers to safeguard their business interests.