Non-Compete Agreement Template

A Non-Compete Agreement is a signed promise by an employee or contractor not to compete with a business for a defined period, within a defined area, after they leave. Employers use one to protect trade secrets, client relationships, and specialized training they have invested in. Typical fields include the company and the individual's names, the restricted activities, the geographic scope, the duration, the consideration offered in exchange for the promise, and a dated signature block for each party. Because a non-compete limits where someone can work, courts scrutinize it closely — and its enforceability depends heavily on where you are.

Important: non-competes are restricted or outright banned in a number of states. California, North Dakota, Oklahoma, and Minnesota generally do not enforce them for employees, and other states limit them by salary, industry, or reasonableness. Federal and state rules in this area also continue to change. This is a general-purpose layout with the sections a non-compete typically includes — it is not legal advice, and non-compete terms vary by state. Have an attorney confirm whether and how a non-compete is enforceable for your situation before you use one.

How teams use this agreement

A consulting firm asks a senior consultant to sign so they cannot immediately join a direct competitor and take clients with them. A manufacturer has an engineer with access to proprietary processes agree to a limited restriction. A salon presents a stylist with a narrow non-compete tied to a specific radius. In each case the employer defines the restricted activity, keeps the scope and duration reasonable, and offers something of value — a job, a promotion, or a bonus — as consideration.

Keep the scope reasonable before signing

Enforceability turns on reasonableness. Restrict only the specific activities that actually compete, keep the geographic scope tied to where the business genuinely operates, and keep the duration short — often six months to two years. Overly broad restrictions are frequently struck down or narrowed by courts. Open the Word (DOCX) download to edit the restricted activities, set the geographic area and duration, and describe the consideration. The fillable PDF is ready to complete and sign as-is.

Common mistakes to avoid

Do not copy a non-compete without checking your state's law — in some states an unenforceable clause can undermine the whole agreement. Do not make the scope, area, or duration broader than necessary. Do not forget consideration: a promise given for nothing may not hold. And remember that only the parties who sign and date the document are bound by it.

Example scenario

A marketing agency in a state that permits reasonable non-competes hires a strategist who will handle major accounts. The agreement restricts the strategist from soliciting those specific clients for twelve months within the metro area the agency serves, and it grants a signing bonus as consideration. An attorney confirms the scope is reasonable for that state, then both parties sign and date two copies.

Choosing PDF or Word

This page offers a printable fillable PDF and an editable Word (DOCX) file. Use the Word file when you need to tailor the restricted activities, geographic scope, duration, or consideration before printing, and the PDF when the terms are settled and you just need to fill and sign. Both include a dated, two-party signature block so the agreement is ready to execute — after you have confirmed it is enforceable where you are.