Competition bans, also known as Covenants to Not Compete or restrictive covenants, are common in employment contracts, work applications, and contracts for the sale of businesses. The general objective of these agreements is to limit, for a specified period, the capacity of workers who sign the agreement against the employer in a given geographical area. If you sign it, you generally agree that you will not be competing with your employer by taking part in a similar activity, as a worker, independent contractor, owner, partner, significant investor and all other forms of competition identified by your employer to cover its foundations. Does my employer have to pay me extra money in exchange for a non-competition clause? An example of a non-compete agreement could concern an undertaking which is one of only two or three such undertakings in a market offering a particular product or service. The company can ask sales reps to sign a non-compete agreement because they don`t want those sellers to go to a direct competitor and try to take away their list of customers. If an injunction is issued by the court, it is a remedy that may prevent you from working as a worker. It may lead you to lose your ability to be employed in violation of the agreement, not to compete during the period set by the court. .