A Tennessee non-compete agreement, also called a covenant not to compete, is a written contract in which a worker promises not to work for a competitor for a set time after the job ends. Employers use it to protect trade secrets and customer lists. The FormsPal template below is a three-page form between an Agent, who is an employee or independent contractor, and a Company. For licensed health care providers, Tennessee sets its own conditions in Tenn. Code Ann. § 63-1-148.[1]
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Tennessee law. If you notice an error or outdated information, please contact us.
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Most non-compete agreements bundle two promises. The worker agrees not to compete with the business, and agrees not to pull away its employees, contractors, customers or vendors. In the FormsPal template, both promises last through the working relationship and for a number of years after it.
If the worker is not an employee, see our independent contractor agreement template. To protect business secrets with a separate contract, see the confidentiality agreement template.
Tennessee has a statute for noncompetes against licensed health care providers, Section 63-1-148 of the Tenn. Code Ann. The restriction must be in a signed writing and last two years or less. It must also use one of two limits on area.[1]
The same section also presumes the terms the parties chose are reasonable. Here is the statute's text.
There shall be a rebuttable presumption that the duration and area of restriction agreed upon by the parties in such an agreement are reasonable.
In plain words, the duration and area the parties agreed on are presumed reasonable, and the presumption can be rebutted.[1]
Check the provider's license first, because the law covers only the license types it lists. Ask a lawyer licensed in Tennessee whether the statute applies to your agreement.
The FormsPal Tennessee template is a three-page form. It names an Agent, who is the employee or independent contractor, and a Company. It then sets out seven numbered sections and signature lines for both sides.
You can fill in the downloaded file with our online PDF editor.
The template is a general non-compete form with no clause for the health care rules above. If the agreement covers a health care provider, compare the years and area you enter with those rules.
Blank lines and unchecked boxes are the easiest things to miss in this template. Go through each point below before either side signs. A lawyer licensed in Tennessee can review the final wording.
These answers explain the rules in Tenn. Code Ann. § 63-1-148, the Tennessee statute on noncompetes against licensed health care providers. Ask a lawyer licensed in Tennessee whether the statute applies to your agreement.
Yes. The restriction must be set out in an employment agreement or other written document that both the health care provider and the employing or contracting entity sign.[1]
Two years or less. The agreement must also use one of the two area limits described above.[1]
It covers health care providers licensed under chapters 3, 4, 5, 6, 8, 9 and 11 of Title 63 of the Tennessee Code. It does not apply to physicians who specialize in emergency medicine.[1]
The agreement must use one of two limits:
Yes, with a condition. An agreement tied to the sale of a health care practice, or of an ownership interest in one, may restrict the provider's right to practice. The duration and the area of the restriction must be reasonable under the circumstances.[1]
General information, not legal or tax advice.
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When the relationship between an employee and company comes to an end, the latter may want the former to sign a non-compete contract, known as “covenant no to compete (CNC),” to keep their confidential information from being being exposed to their competitors. The following are the state-level NCA documents our users read about most often.
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