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No Non Compete Agreement Template for United States

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Key Requirements PROMPT example:

No Non Compete Agreement

"Need a No Non-Compete Agreement for a senior software developer leaving our California-based tech startup in March 2025, confirming they can work for any competitor but must still protect our confidential information."

Document background
The No Non-Compete Agreement has become increasingly important in the U.S. business landscape, particularly as states and federal authorities move to protect worker mobility and market competition. This document is typically used when employers want to explicitly confirm the absence of competitive restrictions, either to comply with state laws prohibiting non-competes or to attract talent in competitive industries. The agreement provides clarity and security for both parties, ensuring that employees or contractors understand their rights to pursue future opportunities without restriction. It's particularly relevant given recent federal initiatives to limit non-compete agreements and varying state laws on their enforceability.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. No Non-Compete Covenant: Express statement that there are no restrictions on future employment or competition

5. Term and Termination: Duration of the agreement and conditions for termination

6. Governing Law: Jurisdiction and applicable law

Optional Sections

1. Confidentiality Obligations: Protection of confidential information, used when sensitive information is involved

2. Return of Property: Requirements for returning company property, relevant for employment relationships

3. Dispute Resolution: Methods for resolving disputes, recommended for complex relationships

4. Severability: Clause ensuring remaining provisions survive if parts are invalid

Suggested Schedules

1. Schedule of Permitted Activities: List of specifically allowed competitive activities

2. Confidential Information Schedule: Detailed list of what constitutes confidential information

3. State Law Addendum: State-specific provisions if operating in multiple jurisdictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses















Industries

Sherman Antitrust Act: Federal antitrust law that prohibits anticompetitive business practices and must be considered when drafting provisions that could restrict trade or competition

Federal Trade Commission Act: Federal law empowering the FTC to prevent unfair methods of competition and deceptive practices that affect commerce

Biden Executive Order on Competition: 2021 Executive Order encouraging the FTC to ban or limit non-compete agreements at the federal level

California Business and Professions Code Section 16600: California state law that generally voids any contract restraining anyone from engaging in a lawful profession, trade, or business

State-Specific Non-Compete Restrictions: Various state laws (e.g., Illinois, Washington, Colorado) that ban or limit the enforcement of non-compete agreements

Fair Labor Standards Act: Federal law establishing wage, hour, and employment standards that must be considered in employment-related agreements

National Labor Relations Act: Federal law protecting employees' rights to organize and bargain collectively, which may impact certain agreement terms

Contract Law Principles: Fundamental legal requirements including consideration, clear language, and mutual agreement necessary for contract validity

Industry-Specific Regulations: Specialized regulations affecting non-compete agreements in healthcare, technology, financial services, and professional services sectors

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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