Non-Compete Agreement Template

A non-compete agreement (also called a covenant not to compete) is a contract provision that restricts an individual's ability to work for competitors or start a competing business after their relationship with your company ends. When properly drafted within legal limits, non-competes protect your business's confidential information, customer relationships, and competitive position.

This non-compete agreement template is designed to balance business protection with enforceability standards. Courts scrutinize non-competes closely and will only enforce them if they are reasonable in scope, duration, and geographic area. This template helps you draft agreements that protect your legitimate business interests without being overly broad.

The template includes: clear identification of the restricted party, definition of competitive activities, geographic scope limitations, time duration limits (typically 6-24 months), consideration and compensation provisions, savings clauses for partial enforceability, and dispute resolution procedures.

Important: Non-compete laws vary dramatically by state. Some states (like California) ban non-competes almost entirely, while others enforce them readily. Always check your state law or consult an attorney before using a non-compete.