What are “non-compete agreements” designed to do?

Non-compete agreements are primarily designed to restrict an employee's ability to work in competing businesses after their employment has ended. These agreements serve to protect the employer's business interests, including trade secrets, proprietary information, and customer relationships that the employee may have been exposed to during their tenure. By limiting where employees can work after leaving the company, non-compete agreements aim to prevent unfair competition and safeguard the employer's market position.

In contrast, the other options reflect misunderstandings of the purpose of non-compete agreements. Allowing employees to freely work for any company contradicts the very nature of such agreements. Guaranteeing ownership of projects does not typically pertain to non-compete restrictions and is more closely related to intellectual property rights. Finally, facilitating the transfer of employees between companies is also contrary to the restrictive nature of non-compete agreements, which focus on limiting future employment opportunities rather than promoting employee movement.