What is the difference between a non-compete and a non-disclosure agreement?

A non-compete agreement and a non-disclosure agreement are forms of contracts that are commonly used in Massachusetts’s employment law. While similar in many respects, these two agreements have distinct differences. A non-compete agreement is a contract between an employer and an employee or contractor that restricts the employee from working with competitors or starting their own competing business. This agreement is usually entered into at the beginning of employment and prevents the employee from leaving their job and taking the company’s valuable trade secrets with them. On the other hand, a non-disclosure agreement is a contract between two parties that binds the parties to not reveal confidential information to any other third parties. This agreement typically requires that all information gained during the course of the business relationship remains inside the company. In short, a non-compete agreement prevents employees from leaving a company and taking trade secrets with them, and a non-disclosure agreement prevents both parties from sharing confidential information with any other third parties. It is important to understand the differences between these two agreements, as they both serve important roles in protecting the interests of employers and employees in Massachusetts.

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What is the difference between a non-compete and a non-disclosure agreement?

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