Contracts that prevent employees from working at an employer's competitor in the future are becoming more common in many kinds of professions. Agreements not to compete, called noncompetes, can also prohibit former employees from seeking out business from former clients. These contracts are a relatively simple way for companies to protect business interests.
If you have been terminated from your job and your employer offers you a settlement agreement, it can be tempting to immediately sign the document. Becoming suddenly unemployed can make a settlement agreement very enticing.