Employee Non-Compete Agreement Template: Protecting Your Business
As a business owner, you rely on your employees to help grow and sustain your company. However, what happens when an employee leaves and takes your trade secrets or starts working for a competitor? To avoid these situations, many businesses use non-compete agreements.
A non-compete agreement is a legal document that prevents employees from working for a competitor or starting a competing business for a certain amount of time after leaving your company. While non-compete agreements are not always enforceable, having one in place can deter employees from taking advantage of your confidential information or clients.
To help you protect your business, we’ve put together an employee non-compete agreement template.
[Your Company’s Name] Employee Non-Compete Agreement
This agreement (the “Agreement”) is entered into between [Your Company’s Name], a [State of Incorporation] Corporation (“Employer”), and [Employee’s Name] (“Employee”), effective as of [start date].
Employee acknowledges and agrees that in the course of Employee’s employment with Employer, Employee has had and will have access to confidential and proprietary information and other trade secrets and business information of Employer, including but not limited to customer lists, pricing, financial information, and business plans (collectively, “Confidential Information”). Employee acknowledges that such Confidential Information is a valuable asset of Employer and that the protection of such Confidential Information is critical to the ongoing success of Employer.
Therefore, in consideration of the mutual promises contained herein, Employee agrees as follows:
1. Non-Competition: During Employee’s employment with Employer and for a period of [insert time frame] months following the termination of Employee’s employment with Employer, Employee shall not, directly or indirectly, own, manage, operate, control, be employed by, participate in, or be connected with any business that is in competition with the business of Employer in [insert geographic area or industry].
2. Non-Solicitation of Customers: During Employee’s employment with Employer and for a period of [insert time frame] months following the termination of Employee’s employment with Employer, Employee shall not, directly or indirectly, solicit or attempt to solicit any of Employer’s customers, clients or accounts, with or without the use of Confidential Information.
3. Return of Confidential Information: Upon the termination of Employee’s employment with Employer, or at any other time upon the request of Employer, Employee shall promptly deliver to Employer all Confidential Information and all documents and materials containing or relating to any Confidential Information, including any copies thereof, and shall not retain any such materials or documents or any copies thereof.
4. Remedies for Breach: Employee acknowledges and agrees that any breach of this Agreement by Employee would cause Employer irreparable injury and that Employer shall be entitled to seek injunctive relief, without bond, restraining Employee from violating or continuing to violate this Agreement.
5. Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
6. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [state of incorporation], and any action to enforce this Agreement shall be brought exclusively in the state or federal courts located in [insert county].
7. Entire Agreement: This Agreement contains the entire understanding between the parties and supersedes all prior and contemporaneous negotiations, understandings, and agreements between the parties, whether oral or written, relating to the subject matter of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Your Company’s Name]
By: __________________________ [Your Name]
Title: __________________________[Your Title]
By using this employee non-compete agreement template, you can establish clear boundaries and expectations with your employees. Keep in mind that non-compete agreements are not always enforceable, and the laws surrounding them can vary from state to state. It’s best to consult with a legal professional before implementing a non-compete agreement in your business.