Non-Compete vs. Non-Solicitation Agreements: What’s the Difference and Which Do You Need?
Non-Compete vs. Non-Solicitation Agreements: What’s the Difference and Which Do You Need?
When employees leave a company, the risk doesn’t always walk out the door with them. Former employees may take client relationships, confidential information, or strategic knowledge that can impact your business long after their departure. That’s why many employers rely on non-compete and non-solicitation agreements to protect their interests.
Although these agreements are often discussed together, they serve distinct purposes. Understanding the difference between non-compete and non-solicitation agreements can help employers make informed decisions — and avoid costly disputes down the road.
At DHDuerr Law LLC, we help employers implement and enforce restrictive covenants that preserve business integrity and reduce legal exposure.
What Is a Non-Compete Agreement?
A non-compete agreement restricts a former employee from working for a competing business or starting a competing venture for a defined period of time and within a specific geographic area after employment ends. The goal is to prevent unfair competition that could arise from an employee’s access to sensitive business information.
Employers often use non-compete agreements when:
- Employees have access to proprietary strategies or data
- Client relationships are critical to revenue
- A departing employee could immediately compete in the same market
Because non-compete agreements limit post-employment opportunities, courts scrutinize them carefully. They must be narrowly tailored to protect legitimate business interests without being overly restrictive.
What Is a Non-Solicitation Agreement?
A non-solicitation agreement focuses on protecting relationships rather than restricting employment. These agreements typically prohibit a former employee from:
- Soliciting or doing business with company clients or customers
- Recruiting or hiring current employees
Unlike non-competes, non-solicitation agreements allow former employees to continue working in the same industry — just not at the expense of the relationships your business worked hard to build.
Employers commonly use non-solicitation provisions to protect customer goodwill, workforce stability, and confidential contact information.
Understanding the Key Differences
The main distinction between these agreements lies in their scope. A non-compete agreement restricts competitive activity itself, while a non-solicitation agreement restricts specific actions, such as contacting clients or employees.
Non-compete agreements are broader and often more challenging to enforce, while non-solicitation agreements are more targeted and frequently viewed as less restrictive. Depending on your business goals and industry, one may be more appropriate than the other — or both may be used together as part of a comprehensive employment agreement.
Which Agreement Is Right for Your Business?
There is no one-size-fits-all solution. The right approach depends on factors such as:
- The nature of your industry
- The employee’s role and access to sensitive information
- The level of risk posed by post-employment competition
In some cases, a carefully drafted non-solicitation agreement may provide sufficient protection. In others, a limited non-compete may be necessary to safeguard confidential information and market position.
At DHDuerr Law LLC, we help employers assess their risks and determine which agreements align with their business needs and legal obligations.
How DHDuerr Law LLC Supports Employers
Restrictive covenants must be drafted, implemented, and enforced correctly to be effective. Our firm works with employers to:
- Draft enforceable non-compete and non-solicitation agreements
- Review existing employment contracts for compliance
- Respond to alleged violations and post-employment misconduct
- Enforce agreements while minimizing business disruption
Whether you’re proactively protecting your company or responding to a dispute, DHDuerr Law LLC provides strategic guidance focused on preserving your competitive position.
Contact DHDuerr Law LLC Today
If you’re unsure which agreement is right for your business — or need help enforcing an existing one — call DHDuerr Law LLC at (404) 777-3196 to discuss your situation and protect what you’ve built.
