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 employee’s 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 employer’s counsel.