When a business changes hands, most buyers expect the seller to sign a non-competition agreement (non-compete) at closing. Even without a non-compete in place, your position as an employee gives the expectation of non-competition and that is enough to launch a lawsuit.Noncompete clauses are restrictive covenants that are commonly found in employment agreements, buysell agreements, and some services agreements. The new company can withdraw the job offer if you can't get the non-compete waived. You could then find yourself in the worst of both worlds. Does the ban apply to noncompetes in agreements between franchisors and franchisees? The number of new jobs being created is way up (which means it's harder to fill jobs and job seekers are likely to have more options). As Wesley and Vietnhi said in the comments, I'll reiterate: Hell no. AMA Opinion 9.02 Restrictive Covenants and the Practice of. Many contracts contain a provision called a "noncompete" or "restrictive covenant.