Compete agreement is a contractual provision that prohibits an employee from working for a competitor after their employment ends. It is generally unlawful in California for an employer's severance agreement to state that you may not compete against the employer in a future job.Learn about the latest regulations on non-competes and find sample clauses. "ELIGIBLE" means any person whose name is on an employment, reemployment, or layoff list for a given class. 107. A noncompete agreement has the ability to threaten your future job prospects, prohibit you from using your hard earned skills and compromise your livelihood. If you have faced or are facing discrimination in the workplace, you may have a claim for relief.