A Non-Compete Agreement is a legally binding contract between an employee and employer in which the employee is restricted from entering into competition with the employer during or after his/her employment. Typically, this restriction will be enforced on the employee for a specific period of time and will outline the geographical limitations of the agreement.
Non-Compete Agreement Key Terms
Beyond enforcing restrictions on the employee’s future ability to compete with the employer, the employer may also ask the employee to sign a non-compete agreement for the following reasons:
- To ensure the protection of client data and information.
- To ensure the protection of proprietary information such as patent or trademark information, manufacturing processes, etc.
- To increase the value of the company in the event that it is acquired in the future.
- To set the standard for new employees and increasing awareness of the company’s proprietary data.
Enforcing an A Non-Compete Agreement
Employers should be aware that Non Compete Agreement templates are not always easy to enforce because employees (particularly recently because some state laws make non-compete agreements hard to uphold) have challenged the agreements in court. Also, enforceability may also be affected by the fact that non-compete agreements are typically drawn up by the employer and signed by the employee before the employee starts working.
A printable non-compete agreement template is always a quick and convenient way for anyone who needs immediate access to an agreement. However, it’s always advisable to have an attorney review the non-compete agreement and ensure that all the fields have been correctly filled out.
Product ID: 23922AL25
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⇒ Plain English & Easy Editing
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⇒ Length: 2 pages (min.)
⇒ Last Revision: 26 June 2020
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⇒ Product ID: 23922AL25