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Non-Compete Agreement

Standalone agreement restricting an employee from working for competitors or starting a competing business for a specified period after leaving employment.

Instructions

Instructions

  • Parties: Employer and employee names
  • Consideration: For existing employees, provide additional consideration (bonus, promotion, continued employment with notice)
  • Restricted Activities: Define what the employee cannot do (work for competitor, solicit clients, etc.)
  • Duration: Specify the restriction period — typically 6 months to 2 years
  • Geographic Scope: Define the geographic area (city, state, nationwide)
  • Industry/Competitors: Be specific about what constitutes a competing business
  • Exceptions: List any permitted activities
  • Warning: Non-competes are unenforceable in California, North Dakota, Oklahoma, and Minnesota. Many other states impose strict limitations. The FTC has also proposed a federal ban.