Yellow Dog Contract

A yellow-dog contract is an arrangement between an employer and an employee in which the employee decides not to form a union in the duration of his or her career as a condition of employment. Employers might take disciplinary action against union organizers who encouraged employees to violate those contracts, which became common in the United States in the 1920s.

Non-compete provisions within or appended to a non-disclosure arrangement to prohibit an employee from competing with other firms in the same sector are often known as yellow-dog clauses.