Download Free Non-Compete Agreement Template

Download Non-Compete Agreement Template

Non-compete agreements (NCAs) specify the terms and conditions of the agreement between an employer and an employee or between two businesses. The agreement typically prohibits the employee or the business from engaging in similar activities or working for a competitor for a certain period of time after the employment or business relationship ends. Explore other free and available contract templates.

What is a non compete agreement template?

The free non compete agreement template is a legal contract where one party agrees to avoid starting a similar profession or trade in competition against another party.

Non-compete agreements are commonly used in industries where employees have access to sensitive information, such as technology, sales and customer data.

What’s in this free non-compete agreement template?

Length of clause
Non-compete definition
Signatures by both parties

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Best Practices When Using Non-Compete Agreement Template

Use clear and specific language

The non-compete agreement should use clear and specific language to describe the prohibited activities, timeframe, and geographic location. Avoid vague or ambiguous terms that could be subject to interpretation or confusion.

Tailor the agreement to situation

Every non-compete agreement should be tailored to the specific circumstances of the agreement. Consider the industry, geographic location, and the employee's position when drafting the agreement. One size does not fit all.

Offer consideration

In exchange for signing the non-compete agreement, offer the employee or business some form of consideration such as monetary compensation, training, or access to confidential information. This shows good faith and makes the agreement more enforceable.

Limit duration & geographic scope

The non-compete agreement should have a reasonable duration and geographic scope. Avoid overly restrictive terms that could prevent the employee or business from earning a living or pursuing their career.

Frequently Asked Questions

Are non-compete agreements enforceable?

The enforceability of non-compete agreements can vary depending on the jurisdiction, the industry, and the specific circumstances of the agreement. In some states, NCAs are not enforceable or are heavily regulated. It's important to consult with a legal professional to ensure that the agreement complies with local laws and regulations.

Can I require all employees to sign a non-compete agreement?

No. Non-compete agreements are typically used for employees who have access to confidential information, trade secrets, or have a direct impact on the employer's business interests. Requiring all employees to sign an NCA, regardless of their position or job duties, could be seen as overly restrictive and unenforceable.

Can I use a non-compete agreement for independent contractors or freelancers?

Yes. Non-compete agreements can be used for independent contractors or freelancers, but the terms of the agreement should be reasonable and tailored to the specific circumstances of the relationship. For example, the geographic scope and duration of the NCA may be different for an independent contractor than for a full-time employee.

What happens if an employee violates a non-compete agreement?

If an employee violates a non-compete agreement, the employer may be entitled to seek damages or an injunction to prevent the employee from continuing to compete. The specific remedies available may vary depending on the jurisdiction and the terms of the agreement. It's important to consult with a legal professional to understand the options available in case of a breach.

Just a heads up – the content available on this site is intended for general information purposes only. At Sign.Plus, we are committed to offering valuable insights, yet it's important to acknowledge that we cannot guarantee the completeness, timeliness, or accuracy of all information presented.
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This information should not be perceived as legal advice, nor should it substitute for professional legal counsel. For specific legal inquiries or advice, we strongly recommend consulting with a licensed attorney who can address your particular legal needs.

Non-Compete Agreement Template

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