Non Compete Agreement Template

This Non-Compete Agreement is entered into as of [1. Effective Date] by and between [2. Employer Full Name] (the “Employer”) and [3. Employee Full Name] (the “Employee”), in consideration of the Employee’s employment and continued access to the Employer’s confidential information and customer relationships.

1. Covenant Not to Compete.

During the term of employment and for a period of [4. Restricted Period] after the termination of employment, the Employee shall not, directly or indirectly, engage in, own, manage, operate, or be employed by any business that competes with the Employer’s business in the geographic area of [5. Geographic Scope] and in the line of business described as [6. Business Scope].

2. Consideration.

The Employee acknowledges that the consideration for this covenant is the Employee’s employment, compensation, and access to the Employer’s proprietary information, which the Employee acknowledges is adequate and independent consideration.

3. Non-Solicitation of Customers.

During the restricted period, the Employee shall not solicit or attempt to solicit any customer or prospective customer of the Employer with whom the Employee had contact during the last [7. Customer Contact Period] of employment, for the purpose of selling products or services that compete with the Employer’s business.

4. Non-Solicitation of Employees.

The Employee shall not, during the restricted period, induce or attempt to induce any employee of the Employer to leave their employment or to accept employment with any competing business.

5. Reasonableness and Reformation.

The parties intend this covenant to be reasonable and enforceable under applicable law. If a court finds any provision to be overbroad, it may modify or “blue-pencil” the provision to the extent necessary to make it enforceable, and the remaining provisions shall continue in full force.

6. Enforceability Notice.

The parties acknowledge that the enforceability of non-compete agreements varies by state. Some states, including California, Minnesota, North Dakota, Oklahoma, and others, restrict or prohibit non-compete covenants entirely. This agreement is intended to comply with the law of the State of [8. State], and the parties should confirm its validity with legal counsel before relying on it.

7. Remedies.

The Employee agrees that a breach of this covenant would cause irreparable harm, and the Employer shall be entitled to injunctive relief and any other remedies available at law or in equity, together with reasonable attorney’s fees.

8. Governing Law.

This Agreement is governed by the laws of the State of [8. State].