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NON-COMPETE AGREEMENT
Effective Date: February 10, 2026
This Non-Compete Agreement ("Agreement") is entered into by and between:
EMPLOYER:
Name: [Employer Name]
Address: [Employer Address]
EMPLOYEE / CONTRACTOR:
Name: [Employee Name]
Address: [Employee Address]
Position: [Job Title]
(the "Employer" and "Employee" are each referred to as a "Party" and collectively as the "Parties")
RECITALS
WHEREAS, the Employee is employed by or being offered employment with the Employer in the position of [Job Title]; and
WHEREAS, during the course of employment, the Employee will have access to the Employer's confidential information, trade secrets, client relationships, and proprietary business methods; and
WHEREAS, the Employer desires to protect its legitimate business interests;
NOW, THEREFORE, in consideration of the employment or continued employment of the Employee, access to confidential information, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. COVENANT NOT TO COMPETE
(a) The Employee agrees that during the term of employment and for a period of 12 month(s) following the termination of employment for any reason, whether voluntary or involuntary (the "Restricted Period"), the Employee shall not, directly or indirectly:
(i) Engage in, own, manage, operate, consult for, or be employed by any business or enterprise that competes with the Employer's business, specifically: [Business Description];
(ii) Establish, enter into, or attempt to establish any competing business within the Restricted Territory;
(iii) Serve as an officer, director, partner, employee, consultant, agent, or independent contractor of any competing business within the Restricted Territory.
(b) "Restricted Territory" means: [Geographic Area].
(c) The restrictions in this section apply regardless of whether the Employee's activities are conducted as a principal, agent, partner, officer, director, employee, consultant, shareholder (except as a passive holder of no more than 2% of the outstanding stock of a publicly traded company), or in any other capacity.
2. CONFIDENTIAL INFORMATION
(a) The Employee acknowledges that during employment, they will have access to and may develop Confidential Information belonging to the Employer.
(b) "Confidential Information" includes, but is not limited to: trade secrets, business plans, financial information, pricing strategies, client lists, vendor relationships, marketing plans, product development plans, proprietary processes, software, algorithms, and any information that derives independent economic value from not being generally known.
(c) The Employee agrees not to use or disclose any Confidential Information during or after employment, except as required in the performance of their duties.
(d) Upon termination of employment, the Employee shall immediately return all documents, files, electronic data, and materials containing or relating to Confidential Information.
3. NON-SOLICITATION OF CLIENTS
(a) During the Restricted Period, the Employee shall not, directly or indirectly, solicit, contact, or attempt to solicit any client, customer, or prospective client of the Employer for the purpose of providing competing products or services.
(b) This restriction applies to any client or customer with whom the Employee had personal contact, involvement, or access to Confidential Information about during the last twenty-four (24) months of employment.
(c) The Employee shall not encourage or induce any client or customer to reduce, terminate, or divert their business from the Employer.
4. NON-RECRUITMENT OF EMPLOYEES
(a) During the Restricted Period, the Employee shall not, directly or indirectly, recruit, solicit, hire, or encourage any employee, contractor, or consultant of the Employer to leave the Employer's service.
(b) This restriction applies to any person who is currently employed by or providing services to the Employer, or who was employed by or providing services to the Employer within the six (6) months preceding the solicitation.
5. CONSIDERATION
The Employee acknowledges that the following constitutes adequate consideration for the obligations under this Agreement:
(a) Initial or continued employment with the Employer;
(b) Access to the Employer's Confidential Information, trade secrets, and client relationships;
(c) Specialized training and professional development provided by the Employer;
(d) Other good and valuable consideration, the receipt of which is hereby acknowledged.
6. REASONABLENESS
(a) The Employee acknowledges that the restrictions contained in this Agreement are reasonable and necessary to protect the Employer's legitimate business interests, including its Confidential Information, trade secrets, goodwill, and client relationships.
(b) The Employee further acknowledges that the geographic scope, duration, and activity restrictions are no broader than necessary to protect these interests.
(c) If any court of competent jurisdiction determines that any restriction in this Agreement is unreasonable or unenforceable, the Parties agree that the court may modify such restriction to the minimum extent necessary to make it reasonable and enforceable, rather than void the restriction entirely.
7. REMEDIES
(a) The Employee acknowledges that a breach of this Agreement would cause irreparable harm to the Employer that cannot be adequately compensated by monetary damages alone.
(b) Accordingly, the Employer shall be entitled to seek injunctive relief, specific performance, and any other equitable remedies available, in addition to any other remedies available at law, without the requirement of posting a bond.
(c) If the Employee breaches any provision of this Agreement, the Restricted Period shall be extended by the duration of the breach, so that the Employer receives the full benefit of the agreed-upon restricted period.
(d) In the event the Employer prevails in any legal action to enforce this Agreement, the Employee shall be responsible for the Employer's reasonable attorney fees and costs.
8. GOVERNING LAW AND JURISDICTION
(a) This Agreement shall be governed by and construed in accordance with the laws of [State].
(b) Any disputes arising under this Agreement shall be submitted to the exclusive jurisdiction of the courts located in [State].
9. GENERAL PROVISIONS
(a) Entire Agreement: This Agreement, together with any employment agreement between the Parties, constitutes the entire agreement regarding the subject matter hereof.
(b) Amendments: This Agreement may only be amended by a written document signed by both Parties.
(c) Severability: If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. Invalid provisions shall be modified to the minimum extent necessary to make them enforceable.
(d) Assignment: The Employer may assign this Agreement to any successor or acquiring entity. The Employee may not assign this Agreement.
(e) Waiver: No waiver of any breach shall constitute a waiver of any subsequent breach.
(f) Survival: The obligations under this Agreement shall survive the termination of the Employee's employment for any reason.
(g) Notices: All notices shall be in writing and delivered to the addresses listed above.
IN WITNESS WHEREOF, the Parties have executed this Non-Compete Agreement as of the Effective Date.
EMPLOYER:
Signature: ____________________________
Name: [Employer Name]
Title: ____________________________
Date: ____________________________
EMPLOYEE / CONTRACTOR:
Signature: ____________________________
Name: [Employee Name]
Date: ____________________________
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What is a Non-Compete Agreement?
A Non-Compete Agreement (also called a non-competition agreement or restrictive covenant) is a legal contract that prevents an employee or contractor from working for a competitor or starting a competing business for a specified period after leaving a company. It is designed to protect the employer's trade secrets, client relationships, and competitive advantage.
Non-compete agreements are widely used in industries where employees have access to sensitive business information, proprietary technology, or key client relationships. However, enforceability varies significantly by state — some states like California ban most non-competes entirely, while others enforce them if they are reasonable in scope, duration, and geography.
Key components of a Non-Compete
Specifies exactly what business activities the employee cannot engage in — must be narrow enough to be enforceable.
The time period after termination during which restrictions apply. Courts typically favor 6-24 months as reasonable.
The physical area where competition is restricted — city, state, or region. Must be proportional to the employer's actual market.
Something of value given in exchange — employment, continued employment, access to confidential information, or a monetary payment.
State-by-state enforceability
Non-compete enforceability varies dramatically across the United States. Here is a general overview:
| Enforceability | States | Notes |
|---|---|---|
| Banned / Unenforceable | California, North Dakota, Oklahoma, Minnesota | Non-competes are void or largely unenforceable |
| Heavily Restricted | Colorado, Illinois, Washington, Oregon, Maine | Income thresholds, limited duration, or specific worker exemptions |
| Generally Enforceable | Texas, Florida, New York, Georgia, and most other states | Enforceable if reasonable in scope, duration, and geography |
Always check your specific state's current laws. Legislation around non-competes is evolving rapidly.
Frequently asked questions
Can my employer force me to sign a non-compete?
Generally, an employer can make signing a non-compete a condition of employment. However, for existing employees, many states require additional consideration (like a raise, promotion, or bonus) beyond just continued employment. You have the right to negotiate the terms before signing.
What makes a non-compete unenforceable?
Courts may refuse to enforce a non-compete if it is too broad in duration (e.g., 10 years), geographic scope (e.g., worldwide for a local business), or activity restrictions (e.g., prohibiting all work in an entire industry). Lack of consideration, unconscionability, or violation of state law can also make it void.
What happens if I violate a non-compete?
If you violate a non-compete, your former employer can seek an injunction (court order to stop you) and sue for damages. Consequences can include being forced to leave your new job, paying financial damages, and covering the employer's legal fees. Some agreements also extend the restricted period by the duration of the violation.
Is a non-compete the same as a non-solicitation agreement?
No. A non-compete restricts you from working for competitors entirely. A non-solicitation agreement only prevents you from contacting the employer's clients or recruiting their employees. Non-solicitation agreements are generally easier to enforce because they are narrower in scope.
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