Ownership and transitions
Non-compete clause
A contract term that limits where, or for how long, a person may work in the same field after leaving a job, often tied to a distance or time period.
A non-compete clause is a term, often found in an employment contract, that stops a worker from taking a new job or starting a business after leaving. The FTC describes it as a clause that prohibits, penalizes or functionally prevents that move.
In dentistry the ADA notes that a valid non-compete will almost certainly be limited by time and by geographic area. It sits within the wider group of restrictive covenants and is related to a non-solicitation clause, which targets patients or staff instead.
Enforceability varies by state and by current law, and federal rules on this topic have changed in court. An attorney should review any real clause. This entry is a general definition, not legal advice.