In which scenario would a non-compete agreement be most likely utilized?

A non-compete agreement is primarily utilized to protect a company's interests by preventing a former employee from taking sensitive information, trade secrets, or competitive advantage to a rival business after leaving the company. In the scenario where an employee is terminated and has access to sensitive information about the company, using a non-compete agreement helps mitigate the risk of that information being used against the company's interests or shared with competitors.

The rationale for this is that employees who have had access to proprietary information can leverage that knowledge in a competing position, potentially harming the original employer's business. The agreement serves as a legal safeguard, creating a barrier that restricts the former employee from working in similar roles or industries for a specified period and within a certain geographical area.

In comparison to the other scenarios, a non-compete agreement is less relevant when hiring new employees lacking experience, as they typically do not have access to sensitive information yet. Similarly, an employee being promoted within the same company usually works under different terms and conditions that may not necessitate additional restrictions. Lastly, restructuring a benefits program does not relate to controlling employee competition or protecting proprietary information, which is the core purpose of a non-compete agreement.