Employee Non-Compete Agreement

Nowadays, there is competition in many fields of business. The nature of business is employees coming and going and companies doing everything in their power to protect their interests.

That is why the Employee Non-Compete Agreement is not an uncommon procedure when hiring new employees. Not every state has the same policy concerning the implementation and enforceability of Employee Non-Compete Agreements.

But in many instances, the companies choose to include them to prevent large workforce turnovers.

What Is an Employee Non-Compete Agreement?

An Employee Non-Compete Agreement is a legally binding document between an employer and its employees. It states that the employee agrees to not compete against the employer, such as starting a business that competes in the same field.

The scope of this agreement can vary in duration and geographical area. For example, the contract may only cover the non-compete aspect when the employee is still working at the company, which prevents them from seeking additional work in the same field.

Also, it could prevent them from seeking employment at a competitor after they leave the company. That's where the time and geography clauses come in.

The Employee Non-Compete Agreement can be difficult to enforce if it is too restrictive, so it should consider the employee. Also, an employer can introduce an Employee Non-Compete Agreement at any time, not just at the start of employment.

Other Names for Employee Non-Compete Agreement

Depending on your state, an Employee Non-Compete Agreement may also be known as:

• Noncompete
• Non-Compete Covenant
• Non-Compete Contract
• Agreement Not to Compete
• Non-Compete Form

Who Needs an Employee Non-Compete Agreement?

In most cases, companies owning proprietary technologies and information require employees to sign an Employee Non-Compete Agreement. Others may have to spend valuable resources on training workers and would rather not have that come back to bite them later.

Why Use Swyft Forms for Your Employee Non-Compete Agreement

Customized for you, by you

Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Employee Non-Compete Agreement.

Specific to Your Jurisdiction

Laws vary by location. Each document on Swyft Forms is customized for your state.

How to Create an Employee Non-Compete Agreement with Swyft Forms

An Employee Non-Compete Agreement doesn't have to contain too much information, just the right information. That means if you miss something, the document could end up unenforceable. That's why a practical template goes a long way.

Let Swyft Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Employee Non-Compete Agreement?

To create your document, please provide:

• Company Details: The legal name of the company, address, and governing state.
• Employee Details: The details of the signing representative of the company or the employer.
• Effective Date: The date when the agreement becomes valid.
• Scope: Details regarding the deal details and what the employee is allowed and not allowed during and after employment.
• Geographic Scope: Describe the area where the employee is supposed to agree not to compete.
• Additional Clauses: Non-solicitation, non-disclosure, and confidentiality.
• Signatures: Both parties need to sign the document to make it legally enforceable.

Employee Non-Compete Agreement Terms

• Non-Disclosure: A clause calling for the employee to not share sensitive information with those outside the company
• Non-Solicitation: A clause preventing the employee from contacting former clients, coworkers, and other assets
• Employee Handbook: A manual explaining all the duties and responsibilities of the employees concerning the company
• Trade Secret: Intellectual property of the employer
• Covenant: Another word for agreement
• Turnover: The frequency of employees coming and leaving in a company
• Assignment: A provision allowing an employer to transfer the contract to another party

Employee Non-Compete Agreement Signing Requirements

When all clauses and provisions are outlined in the document, both the employer and employee sign the form. Only then will it be legally binding. The employee may refuse to sign it, but, depending on the state, the employer has the right to rescind the job offer.

Also, the document doesn't require notarization or a witness by law. However, you may choose to include one or both if you want another layer of authentication.

What to Do with Your Employee Non-Compete Agreement

Once an Employee Non-Compete Agreement is signed, both parties should keep their copies. Also, a copy of the agreement should be attached to the Employment Contract and sent to the company's HR department.