What Does This Actually Mean? Understanding “Restrictive Covenants” on Job Applications

You’re filling out a job application, things are going smoothly—and then you reach a line that makes you pause:

“Note: You may be required to provide a copy of any operative noncompetition, employment and/or confidentiality agreement. All offers of employment are contingent upon the candidate’s ability to begin employment without violating any applicable restrictive covenants or obligations to a third party.”

Legal-sounding language like this might feel intimidating, especially if you’re currently unemployed and just trying to get back on your feet. But clauses like this aren’t unusual—and they’re not meant to scare you. They’re a standard way for companies to protect themselves from legal risk. What matters is knowing how to interpret this kind of language and what it could mean for your job search.

What Is This Statement Really Saying?

This kind of clause is a legal precaution. It means:

• The employer wants to ensure you’re not legally restricted from joining their company.

• If you’ve signed any noncompete, nondisclosure, or employment-related agreements, they may ask for copies.

• If you're bound by a prior agreement that conflicts with this job, they might pause or rescind the offer.

It’s not personal—and it doesn’t automatically mean you’re in trouble. It’s simply about avoiding legal conflict with a third party, typically your former employer.

What Is a Restrictive Covenant? And What Else Might It Be Called?

The phrase “restrictive covenant” is a legal term used to describe any clause in a past employment agreement that limits what you can do after leaving a company. But employers often use other language in its place.

You might see it phrased as:

• Post-employment obligations

• Noncompete agreement

• Confidentiality agreement or NDA

• Nonsolicitation clause

• Ongoing contractual obligations

• Continuing obligations to a former employer

• Employment agreement restrictions

The meaning is the same: you may have signed something that could impact your ability to take on a new role in a specific industry, company, or capacity.

What Does It Look Like in Real Job Applications or Offer Letters?

Employers might use different wording to say the same thing. Here are a few examples of how this might appear:

• “Employment is contingent upon the candidate’s ability to accept this role without breaching any existing noncompete or confidentiality obligations.”

• “You may be required to submit a copy of any employment agreements that include restrictive covenants or third-party obligations.”

• “Candidates must confirm that joining this company will not violate any current or former employment agreements.”

• “By accepting this offer, you confirm that you are not subject to any legal restrictions that would interfere with your ability to perform in this role.”

It’s all meant to ensure that your new employer isn’t stepping into a legal conflict—especially if your last role was with a competitor or in a similar market.

Why This Matters to Job Seekers

If you’ve recently been laid off or are currently unemployed, you may not be thinking about documents you signed years ago. But depending on what those documents say, they could still be in effect.

These clauses can:

• Delay your start date

• Limit the work you can do in a new job

• Affect whether a company is willing to proceed with your offer

Many job seekers are surprised to learn that noncompetes and other clauses can still apply even after a layoff or resignation. Knowing where you stand can help you navigate your job search with confidence.

What You Should Do If You See This Language

1. Check Whether You Signed Anything

Look through any documents from your previous employer, especially:

• Offer letters

• Employment agreements

• Severance or separation agreements

• Noncompete or NDA forms

If you’re unsure, you can ask your former HR department for a copy.

2. Review What It Actually Says

If you did sign something:

• How long is the agreement in effect?

• What types of roles or industries does it restrict?

• Does it apply only in certain regions or more broadly?

If you’re unclear, it’s okay to consult with an employment attorney. Many offer flat-fee contract reviews and can give you clarity.

3. Be Honest and Proactive

If asked whether you’re subject to a restrictive agreement:

• Answer truthfully. It’s better to disclose than to risk a delayed or withdrawn offer later.

• Explain the scope if you believe the agreement won’t interfere with the new role.

• Have documentation ready in case it’s requested during the final offer process.

Companies usually appreciate transparency and are often willing to work around these details if they’re excited to bring you on board.

What If You Did Sign a Noncompete or NDA?

You’re not out of luck. Many noncompete clauses are overly broad—and in some cases, completely unenforceable.

Some things to know:

• States like California, North Dakota, and Oklahoma prohibit most noncompete agreements.

• Other states, such as Illinois, Colorado, and Washington, limit their use—especially for lower-wage workers.

• Courts often reject noncompetes that are vague, overly restrictive, or unreasonable.

Even if your agreement is enforceable, many companies are willing to:

• Delay your start date

• Modify your role to avoid conflict

• Work with you to resolve the issue

The key is communication and clarity.

Final Thoughts: Awareness Is Power

Seeing “restrictive covenant” or similar legal language on a job application might feel intimidating, especially when you’re trying to get back to work. But these clauses are routine. They don’t mean you’re doing anything wrong—and they don’t have to derail your job search.

Take a few minutes to review your previous agreements and understand your obligations. You don’t need to be a legal expert—just informed enough to know when to ask questions or share documentation.

Prepared job seekers are powerful job seekers. And you’ve got this.