Standard Non-Compete Agreement Template

A non-compete agreement is a legal contract that restricts an employee or independent contractor from working for a competitor or starting a competing business after their employment ends. This type of agreement is often used in industries where intellectual property, trade secrets, or customer relationships are considered highly valuable.

Essential Elements of a Non-Compete Agreement

To ensure a non-compete agreement is legally enforceable and effective, it must contain several key elements:

Identification of the Parties: Clearly state the names and addresses of both parties involved in the agreement.

Scope of Employment: Define the specific job duties and responsibilities of the employee or contractor during their employment.

Non-Compete Restrictions: Clearly outline the geographic area and time period during which the employee or contractor is prohibited from competing with the former employer.

Consideration: Specify the compensation or benefits the employee or contractor will receive in exchange for agreeing to the non-compete restrictions.

Confidentiality Clause: Include a clause that prohibits the employee or contractor from disclosing any confidential information or trade secrets acquired during their employment.

Severability Clause: State that if any part of the agreement is found to be unenforceable, the remaining provisions will remain in effect.

Entire Agreement Clause: Indicate that the agreement constitutes the entire understanding between the parties and supersedes any prior agreements or representations.

Governing Law: Specify the jurisdiction that will govern the interpretation and enforcement of the agreement.

Design Elements for a Professional Non-Compete Agreement

To create a non-compete agreement that conveys professionalism and trust, consider the following design elements:

Font and Typography: Use a clean, legible font such as Arial, Times New Roman, or Helvetica. Ensure consistent spacing and alignment throughout the document.

Layout and Structure: Organize the agreement in a clear and logical manner, using headings and subheadings to divide sections. Leave sufficient white space to enhance readability.

Language and Tone: Use formal, concise language that is easy to understand. Avoid jargon or technical terms that may be unfamiliar to the employee or contractor.

Professional Appearance: Print the agreement on high-quality paper and use a professional-looking binder or folder.

Example Non-Compete Agreement Template

NON-COMPETE AGREEMENT

THIS NON-COMPETE AGREEMENT (the “Agreement”) is made and entered into as of [Date] by and between [Employer Name] (the “Employer”) and [Employee Name] (the “Employee”).

1. Scope of Employment. The Employee is employed by the Employer as a [Job Title].

2. Non-Compete Restrictions. For a period of [Time Period] following the termination of the Employee’s employment with the Employer, for any reason, the Employee shall not:

(a) Directly or indirectly own, manage, operate, or be employed by any business that competes with the Employer’s business within a [Geographic Area]; or

(b) Solicit, divert, or take away any of the Employer’s customers, clients, or business opportunities.

3. Consideration. In consideration of the Employee’s agreement to the foregoing non-compete restrictions, the Employer agrees to [Consideration].

4. Confidentiality. The Employee agrees to maintain the confidentiality of all of the Employer’s confidential information and trade secrets.

5. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous agreements or representations, whether oral or written.

6. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of [State].

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Employer Name]
By: ____________________________
Name: ____________________________
Title: ____________________________

[Employee Name]
By: ____________________________

Customization and Legal Review

While this template provides a solid foundation, it is important to consult with an attorney to ensure that the non-compete agreement is tailored to your specific business needs and complies with applicable laws. Consider factors such as the industry, the nature of the employee’s work, and the geographic area in which the business operates.