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Non-Compete Agreement
Protect your business interests and trade secrets with this enforceable Non-Compete Agreement Template.
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Non-Compete Agreement
This Non-Compete Agreement (“Agreement”) is entered into as of [Date], between:
• Employer: [Company Name], at [Address].
• Employee: [Full Name], residing at [Address].
1. Purpose
To protect proprietary information, trade secrets, and business interests, Employee agrees to restrictions on competition as outlined below.
2. Non-Compete Clause
Employee shall not engage, directly or indirectly, in any competing business similar to Employer’s business ([describe business activities]) within [Geographic Area] for a period of [e.g., 1 year] after termination of employment.
3. Non-Solicitation
Employee agrees not to solicit Employer’s clients, customers, or employees for [X] years after employment termination.
4. Confidentiality
Employees agree not to disclose any confidential information, including trade secrets, client lists, or business strategies, either during employment or thereafter.
5. Duration and Territory
Restrictions apply for [e.g., one year, two years] following termination of employment, within the geographic area of [City, State, Region, or Radius].
6. Remedies for Breach
Employer may seek injunctive relief, monetary damages, or other remedies permitted by law for violations of this agreement.
7. Governing Law
This Agreement is governed by the laws of the State of [State]. Any disputes arising shall be resolved in the courts located in [County, State].
8. Entire Agreement and Amendments
This Agreement constitutes the entire agreement and supersedes any prior understandings. Amendments must be in writing and signed by both Parties.
9. Acknowledgement and Acceptance:
Employee Signature: ________________________________ Date: _____________
Printed Name: __________________________________
Employer Signature: ______________________________ Date: ____________
Printed Name/Title: _____________________________
Details
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Non-Compete Agreement
NON-COMPETE AGREEMENT FAQ
What is a non-compete agreement?
A non-compete agreement is a legal contract that prevents an employee, contractor, or business partner from working with a competitor or starting a competing business for a set period of time and within a defined geographic area after leaving the company.
Why do you need a non-compete agreement?
It safeguards your business’s competitive edge by protecting confidential information, trade secrets, client relationships, and proprietary strategies from being used by competitors. This can be critical in industries where knowledge and contacts are highly valuable.
When should I use a non-compete agreement?
Use a non-compete agreement when hiring or partnering with individuals who will have access to sensitive business information, high-value client accounts, or strategic plans—especially in competitive markets.
How to write a non-compete agreement?
Specify exactly what activities are restricted, define the geographic scope and time limits, outline any exceptions, detail the consequences for violations, and ensure the document is compliant with local laws. Have all parties review and sign the agreement to make it enforceable.
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