A Non-Compete Agreement protects your business when employees, contractors, or business partners leave. This template helps you define reasonable competitive restrictions that are enforceable in court while respecting the other party’s right to earn a livelihood.
What Is a Non-Compete Agreement?
A non-compete agreement (NCA or non-compete clause) is a restrictive covenant that prevents a party from engaging in competitive activities for a specified period after the end of a business relationship. It’s designed to protect trade secrets, client relationships, specialized training investments, and competitive advantages.
Non-competes are commonly used with executive hires, sales employees, contractors who access proprietary methods, and during business acquisitions.
Key Clauses to Include
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Competing Activities — Define exactly what constitutes “competition.” Be specific about industries, products, or services restricted.
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Geographic Scope — Limit restrictions to relevant market areas. National or worldwide restrictions are rarely enforceable.
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Duration — 6 months to 2 years is typical. Longer periods face increased judicial scrutiny.
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Consideration — The employee must receive something of value in exchange (job offer, raise, bonus, severance). Without consideration, the agreement may be void.
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Confidential Information — Cross-reference with any NDA provisions to strengthen protection.
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Non-Solicitation of Employees — Prevent departing parties from poaching your team.
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Non-Solicitation of Clients — Prevent targeting of existing clients or business relationships.
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Remedies — Specify injunctive relief and monetary damages. Include attorney’s fees provision.
How to Customize This Template
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Research your state’s laws — Non-compete enforceability varies dramatically. California bans them. Other states require “reasonable” terms. Know your jurisdiction.
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Keep it narrow — The more specific and limited your restrictions, the more likely a court will enforce them. “Cannot work in digital marketing within 50 miles for 12 months” is better than “cannot work for any competitor.”
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Provide adequate consideration — For new hires, the job itself may be sufficient consideration. For existing employees, you typically need to offer additional compensation.
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Include a severability clause — If a court finds one provision unenforceable, the rest of the agreement can still stand.
How to Send for E-Signature with WPsigner
- Upload — Drag and drop this non-compete agreement into WPsigner
- Add fields — Place signature, date, and acknowledgment fields
- Send — Email a secure link for review and signing
- Track — Monitor the signing process in your WordPress dashboard
- Store — Completed agreements are archived with audit trails