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Non-Compete Agreement Template
A non-compete agreement template covering scope, duration, and consideration — with a prominent notice that non-competes are restricted or banned in many states.
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What you get
- Adoptable non-compete prose with scope, duration, and geography fields
- A consideration clause so the restriction is properly supported
- A fields block for company name, employee, and effective date
- A legal-review note flagging where non-competes are limited or unenforceable
Template preview
A preview of the structure. Download the PDF or CSV for the complete, ready-to-use version.
Legal caution: non-compete agreements are banned outright in some states (including California), void for most workers in several others, and restricted by wage thresholds, duration caps, or notice requirements in many more. Federal rulemaking in this area has also been active and contested. Do not use this template as-is. Have qualified employment counsel confirm whether a non-compete is enforceable at all for this role and location, and adapt every bracketed term to that jurisdiction before asking anyone to sign.
Agreement details
- Company name
- Employee name
- Effective date
- Governing state / country— Confirm enforceability here first
1. Purpose
This agreement is intended to protect [Company name]'s legitimate business interests, including confidential information, trade secrets, and client relationships, by restricting the employee's ability to compete during and for a period after employment. It is only appropriate where permitted by law and should be no broader than necessary.
2. Restricted activity
During employment and for [duration — confirm the maximum your jurisdiction permits, if any] after it ends, the employee agrees not to [work for a direct competitor in a substantially similar role / start a competing business] within [defined geographic area]. The restriction should be tied to the employee's actual role and access to sensitive information, not applied blanket-wide.
3. What the restriction should be limited to
- A specific, defined line of business that actually competes with the company
- A geographic area tied to where the employee actually worked or had influence
- A duration no longer than necessary — and never longer than local law allows
- Roles or seniority levels where a restriction is legally permitted (many states exempt low-wage workers)
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How to use this template
- 1
Check enforceability first
Confirm with counsel whether a non-compete is even usable for this role in this state or country before drafting one.
- 2
Narrow the scope
Limit the restricted activity, geography, and duration to what's genuinely necessary to protect a legitimate business interest.
- 3
Document consideration and sign
Confirm what the employee receives in exchange (new employment, a raise, or separate payment) and have the agreement reviewed before signing.
Frequently asked questions
Is this non-compete agreement legally enforceable?
It depends entirely on where the employee works. Non-competes are void or banned in some states, restricted by salary thresholds or duration limits in others, and treated very differently outside the US. This template is a starting structure only — have employment counsel confirm enforceability for the specific role and location before using it.
Can we use a non-compete instead of a confidentiality agreement?
No — they protect different things and a confidentiality (or NDA) agreement is enforceable far more broadly. Many companies rely on confidentiality and non-solicitation agreements alone precisely because non-competes carry so much legal risk and are increasingly unenforceable.
What happens if a court finds the non-compete too broad?
Depending on the jurisdiction, a court may strike the whole clause, narrow it to what's reasonable, or refuse to enforce any of it. Keeping scope, geography, and duration narrow from the start improves your odds, but this is exactly the kind of judgment call that needs legal review, not a template default.