Some companies require new employees to sign non-compete agreements in an effort to protect their business interests.  But sometimes non-compete agreements can make it difficult or at least challenging for recruiters to place job candidates.  Here’s what you need to know:

A non-compete agreement will restrict a job candidate’s ability to work in a certain capacity, field, job function and even geographic area for a set period of time. In other words they cannot work in a way that would put that job candidate in direct competition with the employer with whom they signed the non-compete agreement.

Not all non-compete agreements are valid.  In order for a non-compete agreement to be considered valid it must be reasonable in scope.  For example, saying that a job candidate cannot work in a certain capacity for five years is not reasonable.  Most non-compete agreements only last about one year after employment.  Also, a non-compete agreement that restricts a job candidate from working anywhere in the world, would not be considered reasonable or valid.

Recruiters need to require that job candidates disclose non-compete agreements before they begin submitting their resume to employers.  If a recruiter attempts to place a job candidate with a company that is restricted by the non-compete agreement, it could be an embarrassing situation to say the least.