Employee Non-Compete Agreement

for Your State
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Instructions and model forms needed in order to draft an agreement between an employer and an employee whereby the employee agrees not to compete with the employer after the employee's termination of employment.

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Protect your business! An Employee Non-Compete Agreement is an agreement between an employer and an employee whereby the employee agrees not to "competeƒ with the employer after the employee's termination of employment. This means that for a certain time and in a certain geographical area the employee cannot (i) engage in a competing business as an owner, partner, agent, employee, contractor or consultant; or (ii) solicit customers for the benefit of a third party engaged in such business. In addition to the provisions described above, this form also provides additional provisions including an agreement not to solicit employees and a confidentiality agreement.

Among others, this form includes the following key provisions:
  • Conflicting Employment
  • Non-compete
  • Non-solicitation of employees
  • Confidentiality
  • Continuing Obligations
This attorney-prepared packet contains:
  1. Instructions and Checklist for the Employee Non-Compete Agreement
  2. Information about the Employee Non-Compete Agreement
  3. Employee Non-Compete Agreement
State Law Compliance: This form can be used in all states
Number of Pages5
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#21851
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.








Employee Non-Compete Agreement




This Package Contains:1. Instructions and Checklist
2. Information about the Employee Non-Compete Agreement; and
3. the Employee Non-Compete Agreement.






Instructions & Checklist
Employee Non-Compete Agreement


[_] This package contains:  
(1) Instructions and Checklist for the Employee Non-Compete Agreement;
(2) Information about the Employee Non-Compete Agreement; and
(3) the Employee Non-Compete Agreement.

[_]  The Employer should review the Employee Non-Compete Agreement to ensure that it contains no provisions that are not inconsistent with its existing rules or policies (e.g. employee manual).

[_] The Employer must sign the Employee Non-Compete Agreement.

[_] The Employee must sign the Employee Non-Compete Agreement.

[_]  The Employee Non-Compete Agreement should be signed at the beginning of the employment relationship.

[_] Generally both the Employer and the Employee each retain an original signed Employee Non-Compete Agreement. Therefore, two original copies of the Employee Non-Compete Agreement should be executed (i.e. signed).

[_]  If the Employee is covered by a collective bargaining agreement or union contract, check with your attorney to determine whether you can use a non-compete agreement.

[_] Laws vary from time to time and from state to state. These forms are not intended to be and are not a substitute for legal advice. These forms should only be a starting point for you and should not be used or signed before first consulting with an attorney to ensure that it addresses your particular situation. An attorney should be consulted before negotiating any document with another party.

[_] The purchase and use of these forms is subject to the “Disclaimers and Terms of Use” found at findlegalforms.com.





Information
Employee Non-Compete Agreement


An Employee Non-Compete Agreement is an agreement between an employer and an employee whereby the employee agrees not to “compete” with the employer after the termination of employees employment.  This means that for a certain time and in a certain geographical area the former employee cannot (i) engage in a competing business as an owner, partner, agent, employee, contractor or consultant; or (ii) solicit customers for the benefit of a third party engaged in such business.  
 
In addition to the provisions described above, this form also provides additional provisions including an agreement not to solicit employees and a confidentiality agreement.

Most states will enforce this type of agreement.  However, most states will also require that for the agreement to be enforceable the employee must have received “consideration” for signing the document.  This means that the employee must have received some gain from signing the agreement.  Because of this, it is best if the employee signs the Employee Non-Compete Agreement at the beginning of his/her employment, then it becomes a condition of his/her employment and the gain the employee receives (the job) is obvious.

Employment relationships are governed by both federal and state law.  Many of the state laws differ dramatically (e.g. some states have imposed strict limitations on non-compete clauses), therefore employers and employees should become familiar with the laws of their specific state and the federal government before entering into an employment arrangement.  Furthermore, before using the form you should always consult with your attorney to ensure that it addresses you specific situation.

This document should not be used with employees that are covered by a collective bargaining agreement or union contract until carefully reviewed by the employers counsel.
Employee Non-Compete Agreement


This Employee Non-Compete Agreement (the “Agreement”) is made effective as of _____________________________________________,  20______, by and between _________________________________________ (the “Employer”) and _______________________________________ (the “Employee”) (collectively referred to as the “Parties”).

For good consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

1.  CONFLICTING EMPLOYMENT:  Employee agrees that during the time of his employment with Employer, he/she will not accept nor will he/she engage in employment, consulting or other business activity directly related to the business of the Employer.

2.  NON-COMPETE:  Following the termination of employment with Employer for any reason, Employee agrees not to engage directly or indirectly in any business substantially similar to or in competition with the business of the Employer, it successors or assigns for a period of __________________ (e.g. six months) within a radius of ______________ miles of Employers home address.  
For purposes of this agreement, engaging in “any business substantially similar to, or in competition with the business of Employer” shall mean: (i) engaging in a business as an owner, partner or agent; (ii) taking employment with a third party engaged in such business either as an employee, contractor or consultant; or (iii) soliciting customers for the benefit of a third party engaged in such business.

3.  NON-SOLICITATION OF EMPLOYEES: Employee agrees that for a period of ______________ (e.g. six months) following the termination of his/her employment with Employer, Employee will not induce, recruit or solicit  any of the Employers employees to terminate their employment or enter into another employment arrangement with Employee or a third party.

4.  CONFIDENTIALITY:  Employee acknowledges that Employer shall or may, in reliance upon this Agreement, grant Employee access to Employers confidential and proprietary information.  Employee agrees to not disclose to any other person (unless required by law) or use for personal gain any such confidential or proprietary information at any time during or after the termination of employment, unless Employer grants express, written consent of such a disclosure.  

5.  CONTINUING OBLIGATIONS:  Notwithstanding the termination of Employee for any reason, Sections 1, 2, 3 and 4 of this Agreement will continue in full force and effect following such termination.

6.  BINDING EFFECT:  The covenants and conditions contained in the Agreement shall apply to and bind the Parties and the heirs, legal representatives, successors and permitted assigns of the Parties.

7.  WAIVER: The failure of either party to enforce any provisions of this Agreement shall not be deemed a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.

8.  SEVERABILITY: If any part or parts of this Agreement shall be held unenforceable for any reason, the remainder of this Agreement shall continue in full force and effect. If any provision of this Agreement is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.

9.  ENTIRE AGREEMENT: This Agreement constitutes the entire agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Agreement. There are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Agreement. This Agreement may be modified in writing and must be signed by both Employee and Employer.

10.  GOVERNING LAW:  This Agreement shall be governed by and construed in accordance with the laws of the State of _______________________________.


IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year first above written.


EMPLOYER:

___________________________________________________
(Signature)
__________________________________
(Name  Please Print)
__________________________________
(Position)



EMPLOYEE:
____________________________________________________
(Signature)
___________________________________
(Name  Please Print)

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TX

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Great form! You can download an editable .doc or .pdf. Since some states require different criteria for certain fields, such as the agreement term and geography, the form leaves these fields blank, for the user to fill in.


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AL

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