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🛡️ Legal & Financial

Free Non-Compete Agreement Template

Download a free non-compete agreement template. Protect your business from competitive threats by departing employees or contractors — ready for e-signature.

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Full Template Text

Copy the usable agreement below, replace every [BRACKET] placeholder, then customize for your situation.

Non-Compete Agreement
NON-COMPETE AND NON-SOLICITATION AGREEMENT This Non-Compete and Non-Solicitation Agreement (the "Agreement") is entered into as of [Effective Date] (the "Effective Date"), BETWEEN: [Employer Name], with a principal place of business at [Employer Address] (the "Employer"); AND [Employee Name], with a principal place of business at [Employee Address] (the "Employee"). The Employer and the Employee may be referred to individually as a "Party" and collectively as the "Parties." 1. DEFINITION OF COMPETING ACTIVITIES "Competing Activities" means [Restricted Business Activities]. The Employee acknowledges access to trade secrets and customer relationships justifying reasonable restrictions, to the extent permitted by law. 2. GEOGRAPHIC SCOPE AND BOUNDARIES Restrictions apply within [Geographic Scope]. If a court finds the scope overbroad, it may be reformed to the maximum enforceable extent permitted by law. 3. DURATION OF RESTRICTIONS Non-compete restrictions run for [Restriction Duration] after termination of employment. Non-solicitation of employees and customers runs for [Non-Solicitation Duration] after termination, to the extent permitted by law. 4. CONSIDERATION AND COMPENSATION In consideration, the Employee receives [Consideration Amount] and/or continued employment and access to confidential information. Lack of separate consideration may affect enforceability in some jurisdictions. 5. CONFIDENTIAL INFORMATION PROTECTION The Employee will not use or disclose [Confidential Information Definition] except as required for employment. This obligation survives termination. 6. NON-SOLICITATION OF EMPLOYEES The Employee will not solicit or hire Employer employees for [Employee Non-Solicit Duration] after termination, to the extent permitted by law. 7. NON-SOLICITATION OF CLIENTS The Employee will not solicit or service Employer customers with whom the Employee had material contact for [Customer Non-Solicit Duration], to the extent permitted by law. 8. REMEDIES FOR BREACH Breach may cause irreparable harm. The Employer may seek injunctive relief and damages, including reasonable attorneys' fees where allowed by law, without limiting other remedies. 9. GOVERNING LAW This Agreement is governed by the laws of [Governing Law / Jurisdiction], without regard to conflict-of-law principles. The courts located in [Governing Law / Jurisdiction] will have exclusive jurisdiction over disputes arising out of or relating to this Agreement, unless the Parties agree in writing to mediation before litigation. 10. GENERAL (a) Entire Agreement. This Agreement constitutes the entire agreement between the Parties concerning its subject matter and supersedes prior or contemporaneous agreements on that subject. (b) Amendments. Modifications must be in writing and signed by both Parties. (c) Severability. If any provision is held unenforceable, the remaining provisions remain in effect. (d) Assignment. Neither Party may assign this Agreement without the other Party's prior written consent, except to a successor in connection with a merger, acquisition, or sale of substantially all assets. (e) Counterparts and Electronic Signatures. This Agreement may be executed in counterparts, including electronic signatures, each of which will be deemed an original. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. EMPLOYER Name: [Employer Name] Signature: _______________________________ Name of Signatory: _______________________ Title: ___________________________________ Date: ____________________________________ EMPLOYEE Name: [Employee Name] Signature: _______________________________ Name of Signatory: _______________________ Title: ___________________________________ Date: ____________________________________

This is a starting template, not legal advice. Have a qualified attorney review it for your jurisdiction and use case before signing.

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

  1. Competing Activities — Define exactly what constitutes “competition.” Be specific about industries, products, or services restricted.

  2. Geographic Scope — Limit restrictions to relevant market areas. National or worldwide restrictions are rarely enforceable.

  3. Duration — 6 months to 2 years is typical. Longer periods face increased judicial scrutiny.

  4. Consideration — The employee must receive something of value in exchange (job offer, raise, bonus, severance). Without consideration, the agreement may be void.

  5. Confidential Information — Cross-reference with any NDA provisions to strengthen protection.

  6. Non-Solicitation of Employees — Prevent departing parties from poaching your team.

  7. Non-Solicitation of Clients — Prevent targeting of existing clients or business relationships.

  8. Remedies — Specify injunctive relief and monetary damages. Include attorney’s fees provision.

How to Customize This Template

  1. Research your state’s laws — Non-compete enforceability varies dramatically. California bans them. Other states require “reasonable” terms. Know your jurisdiction.

  2. 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.”

  3. Provide adequate consideration — For new hires, the job itself may be sufficient consideration. For existing employees, you typically need to offer additional compensation.

  4. 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

  1. Upload — Drag and drop this non-compete agreement into WPsigner
  2. Add fields — Place signature, date, and acknowledgment fields
  3. Send — Email a secure link for review and signing
  4. Track — Monitor the signing process in your WordPress dashboard
  5. Store — Completed agreements are archived with audit trails

Frequently Asked Questions

What is a non-compete agreement?

A non-compete agreement (NCA) is a contract that restricts a person from working for competitors or starting a competing business for a defined period after leaving an employer or ending a business relationship. Its purpose is to protect trade secrets, client relationships, and competitive advantages.

Are non-compete agreements enforceable?

Enforceability varies by jurisdiction. California bans non-competes for employees entirely. Other states enforce them if they are reasonable in scope, duration (typically 6-24 months), and geography. The FTC has proposed federal restrictions. Always consult local laws and an attorney before relying on non-compete enforcement.

What makes a non-compete agreement reasonable?

Courts generally consider three factors: reasonable duration (6 months to 2 years), limited geographic scope (relevant market areas, not worldwide), and narrow activity restriction (specific competing activities, not all employment). Overly broad non-competes are often struck down or narrowed by courts.

Can a non-compete be signed electronically?

Yes. Electronically signed non-compete agreements are legally binding under the ESIGN Act and UETA. WPsigner ensures compliance with built-in audit trails documenting the exact time, date, and IP address of each signature.

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