What Is a Non-Compete Agreement?

A Non-Compete Agreement is a legally binding contract signed by the employee that gives their consent not to share information they have learned during their previous employment with the new company that hired them. To make sure the employer is well-protected keeping their place in the field and the employee does not disclose trade secrets with a competitor, you need to offer a Non-Compete Agreement Template to any valuable professional that is going to leave your company and possibly work in the same location.

How to Get Out of a Non-Compete Agreement?

Here are some tips you may use when a Non-Compete Agreement interferes with your employment months and years after you terminate an employment agreement signed with your old employer: Monitor the behavior of the employer . It is probable they violated the agreement failing to pay your compensation on time or contacting people you work with in the same field and bad-mouthing you in order to prevent you from getting the job you deserve. Besides, it is highly likely the employer will no longer have a reason to enforce the terms of the Non-Compete Agreement by changing the company policy or ending their professional relationship with certain customers. Even if you could not manage to avoid signing the papers, in case this issue somehow has a negative impact on your future, you may still have a chance to prove the contract is unenforceable . For example, the compensation you received from the employer was not sufficient compared to the job opportunities you have had to decline or the duration of the agreement is unreasonable preventing you from getting a job you want especially if you worked for your former employer for a short time. Some professionals, and this is quite common in health care, are allowed to be hired even if the provisions of the Non-Compete Agreement forbid them to get employed in a certain area . For instance, if your city has a shortage of surgeons capable of performing a complicated surgery, no contract you have signed with your ex-employer can prevent you from helping a patient.

What Happens If You Violate a Non-Compete Agreement?

If the individual breaches the terms of the Non-Compete Agreement signed during the employment termination process , the employer has a right to send them a formal complaint - a demand letter that requests them to fix the issue if possible - and later file a lawsuit to seek damages. In case the loss of profit the employer would otherwise obtain is proven in court, the person responsible for violating a contract may have to pay a large sum of money - moreover, it is likely you are going to lose your new job and damage your reputation especially if you are working in an industry where people know each other well.

How Does a Company Know If You Violate a Non-Compete Agreement?

There are various ways for the employer to learn you have been trying to avoid your responsibility to comply with the provisions of the legal Non-Compete Agreement: The employer may contact the organization you work for or plan to work for in the nearest future . If they have a personal relationship with your new boss which is possible if you belong to the same industry or professionals like you are rare and well-known on the job market , they may reach out to the employer and prevent them from interviewing you or keeping you as an employee. It is easy to contact the customers and find out whether the ex-employee has been reaching out to them offering their services . The clients in question may want to maintain a positive relationship with the employer and provide them with e-mails and call logs proving there was an attempt to steal or borrow a customer from a competitor. If the wording of the simple Non-Compete Agreement allows this kind of measure, the employer may be entitled to know where their former employee is going to work for a considerable amount of time - from one to five years . The latter may have to warn the employer about their new job, and if the terms of employment breach the contract, the employer may need to protect their business interests .

How to Negotiate a Non-Compete Agreement?

Follow these steps to ensure a Non-Compete Agreement does not violate the interests of both parties during the crucial negotiations period: Both the employer and the employee should talk to a lawyer before signing or refusing to sign a Non-Compete Agreement . While this is not a legal requirement and the agreement will be valid either way, take care of your future by consulting with an attorney specializing in labor law . Depending on your job, experience, and the market demands for the employees of your caliber, you may need to check if the provisions of the agreement are fair and reasonable . For example, it will not make any sense to forbid an accountant to find employment in the same district of the city while a former top manager of the organization may not be allowed to be hired by a competitor. Be careful with other restrictions and limitations - for instance, you may be asked to sign a non-disclosure agreement that will prohibit you from sharing confidential information you have learned during your employment . Only sign the documentation you are comfortable with, even if the amount of money offered by the employer seems generous at first.

Free Non-Compete Agreement Templates - Customize, Download & Print PDF

PDF DOCX

Non-compete Agreement Template - South Carolina

Residents of South Carolina may use this type of template to prevent any business secrets from exposure to the general public or any fellow competitors.

Business Employment Forms Trade Secret Business Contract Employment Contract Template HR Forms Non Disclosure Form

Fill PDF Online

PDF

Word

PDF DOCX

Non-compete Agreement Template - South Dakota

This type of agreement is used in South Dakota and states that there is certain information relating to the business which cannot be shared by the employee.

Employment Forms Business HR Forms Employee Confidentiality Employment Agreement Business Contract Trade Secret

Fill PDF Online

PDF

Word

PDF DOCX

Non-compete Agreement Template - Tennessee

In Tennessee, this type of agreement is drafted for businesses that wish to contain certain information (mainly company secrets) behind closed doors.

Business Agreement HR Forms Business Employment Forms Employment Contract Template

Fill PDF Online

PDF

Word

PDF DOCX

Non-compete Agreement Template - Texas

This type of template is used in Texas and prevents a former employee from seeking employment opportunities in a similar business, usually for a specific amount of time.

Employment Forms Business HR Forms

Fill PDF Online

PDF

Word

PDF DOCX

Non-compete Agreement Template - Utah

This type of template is used in Utah to record in writing all conditions and agreements that were mutually decided upon by an employer and an employee regarding confidential information relating to the business.

Employment Forms HR Forms Business

Fill PDF Online

PDF

Word

PDF DOCX

Non-compete Agreement Template - Vermont

This type of template is used in Vermont in order to act as a protective barrier, ensuring any confidential information is protected that relates to a business.

Trade Secret Employment Agreement Prohibited Activities HR Forms Business Employment Forms Contractual Agreement

Fill PDF Online

PDF

Word

PDF DOCX

Non-compete Agreement Template - Virginia

Residents of Virginia may use this type of template to protect certain confidential information by ensuring that other parties do not share such information.

Employment Contract Template HR Forms Employee Agreement Form Business Law Business Employment Forms

Fill PDF Online

PDF

Word

PDF DOCX

Non-compete Agreement Template - Washington

This template is used in Washington and is the best way to safeguard a company from any inappropriate disclosures of classified information which could end in devastating results for a business.

Employment Forms Business HR Forms Employment Agreement Trade Secret

Fill PDF Online

PDF

Word

PDF DOCX

Non-compete Agreement Template - West Virginia

This type of agreement is used in West Virginia and states that there is certain information relating to the business which cannot be shared by the employee.