Homepage Attorney-Approved Non-compete Agreement Document

Form Breakdown

Fact Name Description
Definition A non-compete agreement is a contract that restricts an individual from engaging in business activities that compete with an employer's business for a specified period after leaving the company.
Enforceability The enforceability of non-compete agreements varies by state. Some states enforce them strictly, while others impose significant limitations.
Governing Laws In California, non-compete agreements are generally unenforceable. In contrast, states like Texas and Florida allow them under certain conditions.
Duration The duration of non-compete agreements typically ranges from six months to two years, depending on state laws and the nature of the business.
Geographic Scope Non-compete agreements often specify a geographic area in which the individual cannot compete. This area must be reasonable to be enforceable.

Sample - Non-compete Agreement Form

Non-Compete Agreement Template

This Non-Compete Agreement is made and entered into as of , by and between , residing at , (hereinafter referred to as the "Employee"), and , with a principal place of business at , (hereinafter referred to as the "Employer").

This agreement is governed by the laws of .

The Employee agrees that during the term of employment and for a period of following the termination of employment, the Employee shall not, directly or indirectly:

  • Engage in any business that competes with the Employer within ;
  • Solicit or attempt to solicit any customer or client of the Employer;
  • Hire or attempt to hire any employee of the Employer;
  • Disclose any confidential or proprietary information of the Employer.

The Employee acknowledges that these restrictions are reasonable and necessary to protect the legitimate business interests of the Employer. The Employee further acknowledges that they have had the opportunity to consult with legal counsel regarding this agreement.

If any provision of this Non-Compete Agreement is found to be invalid or unenforceable, the remaining provisions shall still remain in full effect.

This agreement constitutes the entire understanding between the parties and supersedes all prior agreements, whether oral or written, related to the subject matter herein.

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

__________________________
Employee Signature

__________________________
Employer Signature

Date:

Common mistakes

Filling out a Non-compete Agreement can be a straightforward process, but many individuals make common mistakes that can lead to complications later on. Understanding these pitfalls can save time and prevent legal issues down the line.

One frequent error is not reading the entire agreement before signing. Many people rush through the document, overlooking important clauses that could significantly impact their rights. It's crucial to take the time to understand every part of the agreement, as even minor details can have major implications.

Another mistake is failing to clarify terms. Non-compete agreements often include specific language regarding the duration, geographic scope, and types of employment that are restricted. If any terms are unclear, it’s important to ask for clarification. Ignoring this step can lead to misunderstandings that might restrict future job opportunities.

People also tend to overestimate their bargaining power. While it’s important to negotiate terms that feel fair, some individuals assume they have no room to negotiate at all. In many cases, employers may be willing to adjust terms, especially if the agreement seems overly restrictive or unreasonable.

Additionally, not considering the impact on future employment is a significant oversight. Some individuals may sign an agreement without thinking about how it could affect their ability to work in their chosen field later on. It’s essential to weigh the consequences of the restrictions and how they align with long-term career goals.

Another common mistake is neglecting to seek legal advice. Many people think they can handle the agreement on their own, but consulting with a legal professional can provide valuable insights. A lawyer can help identify potential issues and suggest modifications that protect individual rights.

Lastly, forgetting to keep a copy of the signed agreement can create problems later. After signing, it’s essential to retain a copy for personal records. This ensures that individuals can refer back to the agreement if questions or disputes arise in the future.

Avoiding these mistakes can help individuals navigate the complexities of Non-compete Agreements more effectively. Taking the time to understand the document fully and seeking advice when needed can make a significant difference in one's professional journey.