[NDA] Non-compete : Depends

Legality around 'non-compete' is complex, in that every state in the US has different approaches, and some states outright declare them unenforceable in certain situation. So talk to a legal professional. <sefarth.com> Are Non-compete clauses common (market standard) in NDAs? Depends on the context, it being Employer-to-Employee vs Business-to-Business. Yes -
Mar 01, 2024
[NDA] Non-compete  : Depends

Legality around 'non-compete' is complex, in that every state in the US has different approaches, and some states outright declare them unenforceable in certain situation. So talk to a legal professional. <sefarth.com>

Are Non-compete clauses common (market standard) in NDAs? Depends on the context, it being Employer-to-Employee vs Business-to-Business.

Yes - NDAs between employer and employee
No - NDAs between two businesses

Though limited, let's just look at available numbers on how often it appears in NDAs.

For NDAs between two businesses. It seem to be uncommon.

SuperLegal says that "Non-compete clauses appeared in NDAs 5% of the time".

For NDAs between an employee and employer. It seems to be common.

Approximately 57% of U.S. workers have some version of a nondisclosure agreement, or NDA, with their employers, while 70% to 88% of American firms require employees to sign them <US News>

About one in five American workers—approximately 30 million people—are bound by a non-compete clause and are thus restricted from pursuing better employment opportunities <FTC.gov>

So, if you are a business, its is NOT common to have non-compete clauses in the NDA, whereas if you are a employee it is common based on pure number of occurrence. But, again, talk to a legal professional to determine what is right for you.

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