Non-Compete Agreement Template
A professional non-compete agreement template with enforceable clauses covering restricted activities, geographic scope, time limitations, and confidentiality protections. Customize for your business needs.
Parties & Agreement Scope
Identify the parties and define the scope of the non-compete
This Non-Compete Agreement ("Agreement") is entered into as of [Date], by and between:
Company: [Company Name], located at [Address]
Employee/Contractor: [Full Name], residing at [Address]
Purpose: To protect [Company Name]'s trade secrets, client relationships, and proprietary business information during and after the employment relationship.
Non-Compete Restrictions
Define what activities are restricted, where, and for how long
Restricted Activities: During the Restricted Period, Employee shall not directly or indirectly [e.g., engage in, own, manage, or consult for any business that competes with Company's products or services].
Geographic Scope: [e.g., Within a 50-mile radius of Company's offices / Within the United States / Global]
Restricted Period: [e.g., 12 months] following the termination of employment for any reason.
Consideration: In exchange for these restrictions, Employee shall receive [e.g., employment, signing bonus, continued compensation during restricted period].
Remedies & Execution
Consequences of breach and signature blocks
Remedies: In the event of a breach, Company shall be entitled to [e.g., injunctive relief, monetary damages, and recovery of legal fees].
Severability: If any provision is found unenforceable, the remaining provisions shall remain in full effect.
Governing Law: This Agreement shall be governed by the laws of [State/Jurisdiction].
Signatures:
Company: [Name, Title, Date]
Employee: [Name, Date]
How to Use This Template
Check your state laws
Non-compete enforceability varies dramatically by state. Some states ban them entirely. Consult a local attorney before using this template.
Keep restrictions reasonable
Courts invalidate overbroad non-competes. Limit duration to 6-24 months, define a specific geographic area, and restrict only directly competitive activities.
Provide consideration
For existing employees, offer something of value (bonus, promotion, continued employment) in exchange for signing. Without consideration, the agreement may be unenforceable.
Have both parties sign
Both the company representative and the employee must sign and date the agreement. Keep signed copies on file and provide one to the employee.
Customize in Dewx
Inside Dewx, tell Dew: "Draft a non-compete agreement for [role] with a [duration] restriction in [state]." Dew generates a customized agreement, stores it in the employee's profile in OPS Hub, and tracks the agreement's expiration date. Manage all HR documents in one place.
Related Templates
Frequently Asked Questions
Are non-compete agreements enforceable?
Enforceability varies by jurisdiction. Most courts require non-competes to be reasonable in scope, duration (typically 6-24 months), and geographic area. Some states like California largely prohibit them. Always consult a local attorney to ensure your non-compete is enforceable in your jurisdiction. This template is a starting point, not legal advice.
What should a non-compete agreement include?
A solid non-compete includes the parties involved, the restricted activities (what the employee cannot do), geographic scope, time period, consideration (what the employee receives in exchange), exceptions, and consequences of breach. It should also define confidential information and trade secrets being protected.
How long should a non-compete last?
Most enforceable non-competes last 6 to 24 months. Courts tend to view anything beyond 2 years as unreasonable unless protecting highly specialized trade secrets. The duration should be proportional to the sensitivity of the information and the employee's level of access to proprietary knowledge.
Can Dewx help manage employee agreements?
Yes. Dewx OPS Hub stores all employee agreements, tracks expiration dates, and sends renewal reminders. Dew can draft non-compete agreements customized to your business, and you can manage signing workflows directly in the platform. All documents are organized per employee in their profile.
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