Non-Compete Agreement Template: Scope and Duration Terms

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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: _____________________________

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Non-Compete Agreement Template: Scope and Duration Terms

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Frequently asked

Non-Compete Agreement Template — quick answers

Reviewed July 2026 Free download, PDF & DOCX

Are non-competes enforceable?

In most states yes, if reasonable in duration, geography, and scope, and supported by valid consideration. They are void for most employees in California, Minnesota, North Dakota, Oklahoma, and Wyoming, and unenforceable below income thresholds in 11 more jurisdictions.

Did the FTC ban non-competes?

It tried in 2024, lost in court, abandoned its appeals in September 2025, and removed the rule in February 2026. There is no federal ban; state law governs.

How long can a non-compete last?

Six to twelve months is the defensible norm. Massachusetts caps most at 12 months, many courts presume more than 24 months unreasonable, and Florida's CHOICE Act now allows up to 4 years for high earners who get its protections.

What makes a non-compete invalid?

Overbroad territory or duration, vague definitions of competition, missing consideration (especially for existing employees in Pennsylvania and Massachusetts), skipped notice requirements, or an employee below the state's income threshold.

Is a non-compete enforceable if you are fired?

Often yes, but it depends on the state and the agreement. Massachusetts voids non-competes for employees terminated without cause, and courts elsewhere weigh involuntary termination against enforcement.

Can I use one agreement for every state?

No. The five ban states void it, threshold states need the income check, Massachusetts needs the garden-leave clause and notice, and Illinois voids out-of-state governing law. Generate a state-specific version instead of reusing one form.

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