Employers can use a non-compete agreement to prohibit employees from directly competing with their business.  More specifically, employees who sign these agreements pledge not to work in the same line of business as the employer within a certain geographic area for a specified period of time after the employment terminates.  Courts apply a great deal of scrutiny to non-compete agreements.  To be enforceable, they must be limited in both time and geographical location.  For instance, a non-compete agreement that prohibits an employee from working in a line of business for the remainder of his or her life would be unenforceable.  Likewise, a non-compete agreement that prohibits an employee from working for a similar business anywhere in the world would also be unenforceable.  These potential unenforceability issues make it particularly important for employers to seek legal counsel when drafting a non-compete agreement. 

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