Which statement describes a noncompete agreement?

• A. It protects confidential information
• B. It restricts employment with competitors after leaving
• C. It requires proof of employment history
• D. It guarantees job security

Answer: (B)

A noncompete agreement is a contract that restricts where you can work after leaving an employer, usually prohibiting employment with competitors for a defined period and in a defined area. This protection helps the company guard its business interests, such as trade secrets and customer relationships, from being used by rivals.

So the statement that describes a noncompete is that it restricts employment with competitors after leaving. Protecting confidential information is typically the domain of nondisclosure agreements, not noncompetes. Requiring proof of employment history is unrelated to the concept, and guaranteeing job security is not what a noncompete provides.