An exception to an area of a contract. If an employment contract has demands that you work exclusively for your employer, you can “carve out” something that you might already be doing so that it will not be deemed to be in violation of that clause. For example, Annie is asking to carve out her side hustle of selling jewelry in her new employer contract; otherwise she will have to stop her side hustle or she will be deemed in breach of her contract. In this case, her employer will probably allow a carve- out to the exclusivity clause because they realize that if it’s important to her they might risk losing her altogether if they don’t make that exception.
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