A more thorough explanation:

Noncompete

A noncompete, also known as a covenant not to compete, is a legal agreement between an employer and employee that restricts the employee from working for a competitor or starting a competing business for a certain period of time after leaving the current employer.

Example 1: A software company may require its employees to sign a noncompete agreement that prevents them from working for a rival software company for a year after leaving their current job.

Example 2: A hairstylist may sign a noncompete agreement that prohibits them from opening their own salon within a certain radius of their current employer's salon for two years after leaving their job.

Noncompete agreements are designed to protect an employer's business interests by preventing employees from taking valuable knowledge, skills, and clients to a competitor. The examples illustrate how noncompete agreements can be used in different industries and professions to prevent employees from working for competitors or starting their own competing businesses for a certain period of time after leaving their current job.