Non-Compete Agreement Template

We’ve worked with legal experts and proofreaders to develop a non-compete agreement template (Word and PDF) to help protect you from rising competition in your area.

Non-Compete Agreement Template (Free Sample)

We’ve worked with legal experts and proofreaders to develop a non-compete agreement template (Word and PDF) to help protect you from rising competition in your area.
What’s in this template?
  • • Length of clause
  • • Non-compete definition
  • • Signatures
Click below to grab a copy of our non-compete agreement template

What is a non-compete agreement, and in what situations is it used?

Many service businesses have proprietary trade secrets, client contact lists, and business processes. These same companies also take the time to recruit and train the best possible talent to help grow their business.
However, bringing on new team members leaves businesses vulnerable, as employees may decide to work for a competitor taking all of their experience, contacts, and knowledge of your organization.
A non-compete agreement is a formal contract between employers and employees that enforces restrictions on employees if they decide to join competing businesses.
For example, former employees may be restricted from working with competitors in the same geographical location for a defined period.
Another example could be that business partners decide to terminate their relationship and agree to not compete against each other for a specific period.
Not all non-compete agreements are enforceable and are at the discretion of your state regulations. Governments will only support non-compete contracts if they’re considered reasonable.
If you want to learn more about how non-compete agreements work, check out the video below.

Download our free Non-Compete Agreement Sample

Hopefully, by now, you have a better understanding of what a non-compete agreement is and when to present it to employees for the best results.
As you grow your business, you’ll likely need to use non-competes over and over again. That’s why we’ve developed this template to help save you countless hours and paperwork so you can efficiently scale your business while maintaining your competitive edge.
Click below to access our free template today

Best practices when using a non-compete agreement template

Non-compete agreements need to be treated with the utmost care and transparency to communicate with employees in a relatively non-confrontational manner. Below are three best practices we’ve identified when using a standard non-compete form.

1. Set expectations early

Depending on your industry, non-compete contracts may be expected by employees. But you never want to assume.
As soon as you hire a new team member, or better yet, before they’re employed, have the conversation about how your business addresses non-compete terms.
In addition to explaining how non-competes work, take the time to explain why you’ve implemented these measures. If anything, explaining the importance of non-competes is an opportunity to show prospective employees how committed your business is to thrive in your marketplace.
When presenting your employee non-compete agreement template, ask your team if they have any questions about the contract before signing.
By setting expectations and seeking clarification from your team before signing the contract, you’ve made every reasonable attempt to remain transparent about restrictions of non-competes, which will help limit any future disputes.

2. Determine a reasonable restriction period

Perhaps the most crucial decision you’ll need to make with your non compete template is your restraint period.
Ultimately your restraint period is going to depend on your state laws and industry.
With that said, a reasonable period is often considered to be anywhere from six months to two years. Again, depending on the industry.
We recommend you do some research to see what is considered a reasonable restraint period for your industry.

3. When to present your non-compete agreement

You’ll likely be recruiting employees into roles, either externally or internally. The pathway will determine when you present your non-compete contract. For example, if you hire an external candidate, you’ll offer your agreement as part of the external onboarding process.
However, if you’re recruiting a candidate from an unrelated department into a role that could influence your competitive advantage, you’ll need to introduce your agreement when you start your internal onboarding program.
Alternatively, you may decide that a non-compete agreement is required for all employees across your organization. In this case, you could package your non-compete template with your standard employment agreements.

Download our free Non-Compete Agreement Sample

Hopefully, by now, you have a better understanding of what a non-compete agreement is and when to present it to employees for the best results.
As you grow your business, you’ll likely need to use non-competes over and over again. That’s why we’ve developed this template to help save you countless hours and paperwork so you can efficiently scale your business while maintaining your competitive edge.
Click below to access our free template today
Frequently Asked Questions

FAQ about Non-Compete Contracts

There’s no statutory requirement for a non-compete agreement to be notarized by an authorized party. A non-compete is, however, a formal contract that needs to be signed by all parties involved.
A non-compete letter is a summarised and abbreviated version of a non-compete agreement. Sometimes a letter is used in place of a contract.
However, the issue with a letter is that the employer presents the documentation to the employee without consent.
A non-compete contract, on the other hand, means that employees will have the opportunity to review and re-negotiate the agreement until all parties are comfortable signing off on the terms.
There’s no set period for non-compete contracts as state laws consider the industry, location, and if the timeframe is reasonable for all parties.
We recommend you do local research within your industry to see what is commonly accepted as a reasonable restriction period.
A non-compete agreement, like other contracts, needs to be signed by all parties involved to show that everyone acknowledges the terms and conditions of the document.
We acknowledge that you may need to adjust your contract template based on your situation. That’s why we’ve made our form available in Word so you can customize the template to your needs.
If you intend to make significant amendments to your template, we recommend you consult with an attorney to ensure you meet best practices.
document preview

Non-Compete Agreement

Non-Compete Agreement

Parties

– This Non-Compete Agreement (hereinafter referred to as the “Agreement”) is entered into on ______________ (the “Effective Date”), by and between __________________________, with an address of ______________ (hereinafter referred to as the “Employee”) (collectively referred to as the “Parties”).

Term

– This Agreement shall be effective on the date of signing this Agreement (hereinafter referred to as the “Effective Date”), throughout the period of employment of the employee and will remain in effect for a period of ______________ after the conclusion of the employment contract.

Non-Compete

– The Employee hereby agrees that he/she will, during the term of his/her employment, refrain from engaging in any business or company that is competitive with the Employer’s business activity and scope of work. As a result, the Employee will not engage in any business or work that competes with the Company’s business activity.
– The Employee agrees that he/she will not manage, operate, advise, own, control, consult with, or permit his/her name to be used by any business that competes with the Employer.

Signature And Date

– The Parties hereby agree to the terms and conditions set forth in this Agreement and such is demonstrated throughout their signatures below:
Employer
Name: ______________________
Signature: ___________________
Date: _______________________
Employee
Name: ______________________
Signature: ___________________
Date: _______________________

Download our free Non-Compete Agreement Sample

Hopefully, by now, you have a better understanding of what a non-compete agreement is and when to present it to employees for the best results.
As you grow your business, you’ll likely need to use non-competes over and over again. That’s why we’ve developed this template to help save you countless hours and paperwork so you can efficiently scale your business while maintaining your competitive edge.
Click below to access our free template today
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