Use our non-compete agreement template to layout how long an ex-employee or ex-business partner is not allowed to compete with your business.
What to Know Before Using our Non-Compete Agreement Template
When creating a non-compete contract, make sure that you give a brief, yet detailed, description of what the company does. This ensures that there is no confusion pertaining to anything mentioned in the contract. For example, specific what the employee or business partner cannot do after they leave your company.
An important tip to know when creating this agreement is to have both parties offer something of value. This exchange—known as consideration—equates to the employee or business partner not competing with your business. In exchange for not competing, your company offers something to them such as a lump sum payment. This is a key aspect of your document as consideration is a vital piece of legal contracts.
There are two more important characteristics of a non-compete agreement template. First, you can request that the employee or business partner not create their own competing company. However, you can also ask that they not work for a competing company. The second trait you can modify is the length that the employee or business partner cannot create or work for a competing business.
Non-compete agreements can last as long as two years. However, the longer the agreement, the more money it will cost to get an employee to agree to it. Thus, you can modify the length of this agreement to fit your wants and financial means.
Finally, as non-compete agreement template laws are different for every state—with certain states not even allowing these documents—you should make it a priority to speak with an attorney concerning this document to ensure that it meets the legal standards of your state.