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Non-compete agreements typically fall into two categories. The first type restricts individuals from competing with their former employer by either starting a similar business or working for a competitor, targeting existing or potential customers. These agreements can be hard to enforce; to do so, a compelling business interest must be demonstrated in court. Courts may limit enforcement to specific areas where the interest is valid, such as protecting a company’s reputation in a particular city. If the court sees no relevance in other areas, such as a city where the company has no recognition, enforcement may be denied.
