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An Active Non-Compete Agreement is utilized when an employer needs to protect legitimate business interests, including trade secrets, confidential information, and customer relationships. This document is particularly crucial in the United States where enforcement varies by state, requiring careful consideration of local laws and regulations. The agreement typically includes specific terms about restricted activities, geographic scope, and duration, while ensuring compliance with state-specific requirements for consideration and reasonableness. It's important to note that some states severely restrict or prohibit such agreements, making jurisdiction-specific customization essential.
