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This simply means that a former employee cannot compete with the employer within that specific location. For example, some non-compete agreements will define the geographic restriction by a radius around the company's headquarters.
Non-Compete Agreement (NCA): A contract where an employee agrees to not compete with a company for a certain period of time after employment. Non-Solicitation Agreement (NSA): A contract where an employee agrees not to solicit the company's clients, employees, or other individuals with whom the employee worked.
Drafting an Enforceable Noncompete Agreement What is a noncompete agreement? ... Keep the group small. ... Keep the restrictions reasonable and narrow. ... Provide consideration for the agreement. ... Get it in writing. ... Prepare multiple versions if necessary. ... Concede choice of law/forum. ... Provisions to include.
A nonsolicitation agreement, by contrast, permits a broker to work for a competitor, but not to solicit clients of his previous firm.