A "Covenant Not to Compete," often called a non-compete agreement, is a legal contract between an employer and an employee. This agreement restricts the employee from working for competitors or starting a similar business for a specified period after leaving the company. The goal is to protect the employer's business interests and confidential information. These agreements vary by state and can be enforced differently depending on local laws. Courts typically consider factors like the duration of the restriction, geographic area, and whether the terms are reasonable. If deemed too restrictive, a court may refuse to enforce the agreement.