Free Non-Compete Agreement Template
A non-compete agreement limits when and where a person can compete with a business after their working relationship ends, protecting customer relationships and confidential information. This free template sets the restricted activities, geographic area, and time period, and includes non-solicitation and severability clauses. Because non-compete rules are strict and differ sharply by state, enter your terms and have the result reviewed before use.
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NON-COMPETE AGREEMENT
This Non-Compete Agreement (this "Agreement") is entered into and effective as of ________________ between ________________ (the "Company") and ________________ (the "Employee").
1. PARTIES AND CONSIDERATION. In exchange for ________________, which the Employee agrees is good and valuable consideration, the Employee agrees to the restrictions set out in this Agreement.
2. NON-COMPETITION. During the Employee's engagement with the Company and for ________________ after it ends for any reason, the Employee shall not, directly or indirectly, engage in the following competing activities: ________________.
3. GEOGRAPHIC SCOPE. The restrictions in this Agreement apply within the following area: ________________. The Employee agrees this area reflects where the Company actually does business and competes.
4. NON-SOLICITATION OF CUSTOMERS. During the same period, the Employee shall not solicit, divert, or attempt to take away any customer or client the Employee served or learned about through the Company, for the purpose of providing competing products or services.
5. NON-SOLICITATION OF EMPLOYEES. During the same period, the Employee shall not recruit, solicit, or encourage any employee or contractor of the Company to leave the Company or to work for a competing business.
6. CONFIDENTIALITY AND TRADE SECRETS. The Employee shall not use or disclose the Company's confidential information or trade secrets for any purpose other than performing work for the Company. This obligation continues after the engagement ends and applies for as long as the information remains confidential.
7. REASONABLENESS. The Employee acknowledges that these restrictions are reasonable in scope, geography, and duration, are supported by valuable consideration, and are necessary to protect the Company's legitimate business interests, including its confidential information and customer relationships.
8. SEVERABILITY AND MODIFICATION. If a court finds any restriction in this Agreement overbroad or unenforceable, the parties intend that the court modify it to the least extent needed to make it enforceable, and that the remaining provisions stay in full effect.
9. REMEDIES. The Employee agrees that a breach of this Agreement may cause irreparable harm for which money damages are inadequate, and that the Company is entitled to seek injunctive relief in addition to any other remedy available at law or in equity.
10. GOVERNING LAW. This Agreement is governed by the laws of the State of ________________. This Agreement is the entire agreement between the parties regarding non-competition and may be changed only in writing signed by both parties.
This is a general template and not legal advice. Non-compete agreements are heavily regulated and are void or sharply limited in many states, including for lower-wage workers, so review your state's current law or have an attorney review this Agreement before use.
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Questions
Are these documents legally valid?+
These are professionally structured templates using standard clause language. Whether a completed document is legally binding depends on your state's requirements, proper signing (and notarization or witnesses where required), and your specific situation. For anything high-stakes, have an attorney review it. Nothing here is legal advice.
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Will this hold up if it needs to be signed or notarized?+
The template includes signature lines. Some documents need witnesses or a notary to be enforceable in your state. Check your state's requirements before signing, and use a notary where one is required.