Non-compete clauses can impose strong penalties on exiting employees, particularly if their human capital is closely linked to the industry in which the venture is active.

Question

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Non-compete clauses often include restrictions on an employee's ability to work in the same industry for a certain period of time, which can limit their job opportunities and potentially harm their future career prospects. This is especially true for employees whose skills and knowledge are highly specialized and specific to the industry in which their former employer operates.

Non-Compete Clauses Can Impose Strong Penalties on Exiting Employees, Particularly