A non-compete agreement is a legal contract between an employer and an employee that restricts the employee from working for competitors or starting a similar business for a certain period after leaving the company. These agreements are designed to protect the employer's trade secrets, business interests, and client relationships. Typically, non-compete agreements specify the duration, geographic area, and scope of work that the employee must avoid. While they can help businesses maintain a competitive edge, the enforceability of these agreements varies by state and can be challenged in court if deemed overly restrictive or unfair.