Non-compete agreements, or non-competition agreements, are contracts into which an employer and an employee enter that restricts the work the employee can perform for another company when the employee's tenure at the employer company ends. Typically, it's illegal to intentionally restrain trade; however, some states allow employers and employees to voluntarily enter into agreements with future employment restrictions. Contractors have several reasons to require that their high-level employees (e.g., C-Level) enter non-compete agreements.

While these contracts are often used to protect trade secrets or unique software, valid and enforceable non-compete agreements are also a powerful employee retention tool. Given the current labor shortage, ensuring qualified field employees do not leave your company for the competition is more critical than ever. Protecting positions such as PMs, estimators, or field superintendents with a non-compete agreement can help retain experienced employees, thereby maintaining your company's ability to perform.

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