This clause prevents you from doing business with the company's suppliers after you leave. For instance, if you worked at a retailer, you cannot approach their clothing manufacturers to buy directly or work with them for a competing retailer. This is generally considered less restrictive than a full non-compete because it only targets specific business relationships, not your entire career. However, it can still be very limiting if the company has exclusive relationships with key suppliers in your industry. Courts are more likely to enforce supplier non-solicitation clauses than broad non-competes, especially if the restriction is limited in time (typically 1-2 years).
Ask for a list of which suppliers are actually protected by this clause—the company should only restrict you from contacting suppliers you personally worked with or had access to confidential information about. Negotiate the time limit down to one year maximum. Push back if they try to include every supplier they've ever used; the restriction should only cover suppliers where you have real knowledge of confidential pricing, terms, or relationships. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause prevents you from doing business with the company's suppliers after you leave.
Why should I care about this clause?
For instance, if you worked at a retailer, you cannot approach their clothing manufacturers to buy directly or work with them for a competing retailer.
What are my options?
This is generally considered less restrictive than a full non-compete because it only targets specific business relationships, not your entire career.
How does this affect small businesses?
However, it can still be very limiting if the company has exclusive relationships with key suppliers in your industry.