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A non-compete agreement is a contract that limits competing with a business. Employers use it when hiring, to protect client lists, pricing and trade secrets. This free template builds it for employees or contractors, ready to print as a PDF.
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A non-compete agreement, also called a covenant not to compete, is a contract in which a worker, contractor or business seller promises not to compete with a business for a set period and within a set area after the relationship ends.
Employees often learn confidential information on the job, such as client lists, pricing, or technical methods. A non-compete agreement limits what a person may do with that knowledge after leaving. For example, it can bar them from joining a rival or starting a similar business for a set period and within a set area. How far a court will enforce that limit depends on the state.
A non-compete agreement stops a person from working for a rival, while a non-disclosure agreement stops them from sharing confidential information and a non-solicitation agreement stops them from approaching clients or coworkers.
Agreements of this kind are usually grouped into four related types:
Many employers sign a non-compete and an NDA together, because each covers a gap the other leaves. The difference matters where non-competes are restricted: Minnesota's ban does not reach a nondisclosure agreement or an agreement protecting trade secrets or confidential information (Minn. Stat. § 181.988, subd. 1(a)). Rhode Island's non-compete statute leaves covenants not to solicit employees, customers, clients or vendors out of its definition (R.I. Gen. Laws § 28-59-2).
Pick the non-compete agreement template that matches the working relationship you have: an employee agreement, an independent contractor agreement, or a release that lifts an earlier restriction. Each has its own purpose and its own wording.
An independent contractor non-compete agreement is signed between a freelance or self-employed contractor and the business that hires them. The business uses it to keep the contractor from competing, both during the engagement and for a limited time after it ends. It usually covers:
Contractor rules differ from place to place. Louisiana lets an independent contractor whose work is performed under a written contract agree not to carry on a similar business (La. Rev. Stat. § 23:921). Idaho enforces a reasonable written covenant with a key independent contractor (Idaho Code § 44-2701). Minnesota's ban on covenants not to compete reaches independent contractors as well (Minn. Stat. § 181.988), and Rhode Island's non-compete statute does not include an independent contractor (R.I. Gen. Laws § 28-59-2).
An employee non-compete agreement is signed at the start of employment and protects the company's trade secrets and other protected business information. It stops a new employee from using that information against the company after moving to a new workplace or starting their own business.
A release agreement is a separate legal document, signed by the business and the restricted person, that waives the original non-compete agreement. Once it is signed, the person can work for a competitor, start a new business, or work independently without the earlier restriction.
You need a non-compete agreement when a new hire, a contractor or the seller of a business will gain something a competitor would value, such as client relationships, pricing, or technical know-how, and a nondisclosure promise alone would not protect it.
Non-compete agreements appear in any field where staff pick up information that a competitor would value, such as client relationships, pricing, or technical know-how. Three common examples are the financial industry, insurance companies, and the IT field.
Hedge funds, asset managers, brokerage firms and other investment firms often use these agreements with their key staff. Their key employees tend to have wide financial knowledge, and a former employer would not want it to follow them to a rival.
An insurance company pays an employee to sell or administer insurance programs, and that employee helps win the company's clients. A non-compete agreement keeps the employee from joining a competitor or starting a rival business and using what they learned about those clients.
The IT industry has grown quickly, and non-compete agreements are a regular topic there for developers, engineers and product staff. Take a backend developer who builds how a company's database interacts with the browser. The agreement protects the company from that developer using the same know-how at a competitor, or in a new business, for a specified period.
Across these fields, the information an employer most often wants to protect includes:
A non-compete is the heaviest of these restrictions, so use it only where a lighter document would leave a real gap.
Non-compete agreements vary from industry to industry. To get a template that reflects your interests, use our free online document builder. The agreement you create is easy to download as a PDF and print.
A non-compete agreement should name the parties, the restricted activity, the duration, the territory and what the employee receives for signing, and each term should match an interest the business can show it needs to protect.
Keep it narrow. Whatever your state's rule, a covenant that reaches further than the employer's legitimate business interest is the one most likely to be refused. Tie the activity, the time, and the territory to what you actually need to protect.
A filled-in restriction clause names the person, the activity, the period and the area in plain terms. The names, period and area below are made up; set your own after checking the rules in the table below.
Non-Competition. While employed by Brightline Supply Co. and for 12 months after that employment ends for any reason, Jordan Lee will not sell or manage accounts for any business that sells commercial cleaning supplies within 25 miles of the Company's office at 410 Harbor Street, Springfield.
Non-Solicitation. For the same 12 months, Jordan Lee will not ask any customer Jordan Lee served in the last year of employment to move its business to a competitor.
Our free non-compete agreement template covers the standard legal provisions. Adapt the template to your state and your employment setup, then have it reviewed before anyone signs.
Whether a non-compete agreement is enforceable depends on where the employee works: Texas enforces one with reasonable limits on time, geographical area, and scope of activity (Tex. Bus. & Com. Code § 15.50), while California voids most of them (Cal. Bus. & Prof. Code § 16600).
Rules on non-compete agreements are set mostly at the state level, and the states do not agree. Some states void most covenants not to compete. Others enforce one only when it is reasonable in time, area, and scope.
A few states set special limits for certain groups, such as health care workers or lower-paid employees. The state table below shows the general attitude in each state.
The table below gives the main non-compete rule for each jurisdiction our sources cover, with the statute or case behind it. Every row is a summary: read the cited section for its full conditions and exceptions before you rely on an agreement.
| State | Main rule | Citation |
|---|---|---|
| Alabama | Void except as the section provides. An employee may agree not to compete in a specified area where the employer carries on a like business, within reasonable limits of time and place; two years or less is presumed reasonable. | Ala. Code § 8-1-190 |
| Arizona | No general non-compete statute or case in our sources. Broadcast employers only: a television or radio station or network may not require a noncompete clause. | Ariz. Rev. Stat. § 23-494 |
| Arkansas | Enforceable if ancillary to employment, backing a protectable business interest, and no broader in time and scope than needed. Two years after termination is presumed reasonable unless the facts clearly show otherwise. Physician covenants are void. | Ark. Code Ann. § 4-75-101 |
| California | Void to the extent it restrains a lawful profession, trade, or business, except as the chapter provides; read broadly to void noncompete agreements in employment. | Cal. Bus. & Prof. Code § 16600 |
| Colorado | Void, except as subsections (2)(b) and (3) provide, such as a trade secret covenant for a worker earning at least the highly compensated threshold, or the sale of a business. The worker signs a separate notice. | Colo. Rev. Stat. § 8-2-113(2)(a); Colo. Rev. Stat. § 8-2-113 |
| Connecticut | No general non-compete statute or case in our sources. Physicians only: a physician covenant may run no more than one year and fifteen miles from the primary practice site, and the physician signs it separately. | Conn. Gen. Stat. § 20-14p |
| Delaware | No general non-compete statute or case in our sources. Physicians only: a physician covenant restricting practice after the agreement ends is void; the other provisions stay enforceable. | 6 Del. C. § 2707 |
| District of Columbia | Since October 1, 2022, barred for covered employees. For a highly compensated employee: given in writing at least 14 days ahead, and no more than 365 days after separation (730 for a medical specialist). | D.C. Code § 32-581.02; D.C. Code § 32-581.03 |
| Florida | Enforceable if in a writing signed by the person against whom enforcement is sought and reasonable in time, area, and line of business. See the Florida section below. | Fla. Stat. § 542.335 |
| Georgia | Permitted if reasonable in time, geographic area, and scope of prohibited activities; a court may modify a void covenant without making it more restrictive for the employee. | O.C.G.A. § 13-8-53 |
| Hawaii | A contract in restraint of trade is illegal, except listed covenants such as one by the seller of a business. Noncompete and nonsolicit clauses are void for technology business employees. | Haw. Rev. Stat. § 480-4(a); Haw. Rev. Stat. § 480-4(d) |
| Idaho | A key employee or key independent contractor may sign a reasonable written covenant. More than eighteen months after termination is barred unless consideration in addition to employment is given. | Idaho Code § 44-2701; Idaho Code § 44-2704(1); Idaho Code § 44-2704(2) |
| Illinois | Barred unless actual or expected annualized earnings exceed $75,000 per year (rising to $80,000 on January 1, 2027). The employee gets adequate consideration, written advice to consult an attorney, and at least 14 calendar days to review. | 820 ILCS 90/10; 820 ILCS 90/15; 820 ILCS 90/20 |
| Indiana | No general non-compete statute or case in our sources. Physicians only: barred for primary care physicians, and a physician may not sign one with a hospital, its parent company or affiliated manager, or a hospital system on or after July 1, 2025. | Ind. Code § 25-22.5-5.5-2.5; Ind. Code § 25-22.5-5.5-2.3 |
| Iowa | No general non-compete statute or case in our sources. Mental health professionals only: an employer may not limit where a licensed mental health professional practices, bar contact with people the licensee treated, or impose a time restriction on the practice. | Iowa Code § 147.161 |
| Kansas | A reasonable restraint of trade or commerce is not unlawful under the Kansas restraint of trade act. If an owner or employee non-solicitation covenant outside the statutory presumption is overbroad, the court shall modify it and enforce it as modified. | Kan. Stat. Ann. § 50-163 |
| Kentucky | Held not enforceable where the at-will employee got no promotion, raise or training for signing. A health care services agency may not restrict its temporary direct care staff. | Charles T. Creech, Inc. v. Brown, No. 2012-SC-000651-DG (Ky. June 19, 2014); Ky. Rev. Stat. § 216.724 |
| Louisiana | Null and void except as the section provides. An employee may agree not to compete in specified parishes or municipalities where the employer carries on a like business, for up to two years from termination. | La. Rev. Stat. § 23:921 |
| Maine | Enforceable only if reasonable and no broader than needed for a legitimate business interest. Barred for wages at or below 400% of the federal poverty level. Except for physicians, the terms take effect after one year of employment or 6 months after signing, whichever is later. | Me. Rev. Stat. tit. 26, § 599-A |
| Maryland | Null and void for an employee earning 150% of the State minimum wage or less. For a licensed direct patient care employee earning more than $350,000: no more than 1 year and 10 miles. | Md. Code, Lab. & Empl. § 3-716 |
| Massachusetts | Valid only if it meets the statute's minimum requirements, including a writing signed by both sides, the right to consult counsel, and garden leave or other agreed consideration. At most 12 months, or 2 years if the employee breached a fiduciary duty or unlawfully took the employer's property. Not enforceable against nonexempt employees, students, employees age 18 or younger, or employees laid off or terminated without cause. | Mass. Gen. Laws ch. 149, § 24L |
| Michigan | Allowed if reasonable as to duration, geographical area, and type of employment or line of business; a court may limit it to make it reasonable. | Mich. Comp. Laws § 445.774a |
| Minnesota | For contracts and agreements entered into on or after July 1, 2023: void and unenforceable, except a covenant agreed upon during the sale of a business or in anticipation of the dissolution of a business. | Minn. Stat. § 181.988; 2023 Minn. Laws ch. 53, art. 6, § 1 |
| Missouri | The employer proves the agreement protects trade secrets or customer contacts and is reasonable as to time and geographic space. A reasonable written covenant not to solicit or hire employees is enforceable. | Whelan Security Co. v. Kennebrew, No. SC92291 (Mo. banc Aug. 14, 2012); Mo. Rev. Stat. § 431.202 |
| Montana | Void to the extent it restrains a lawful profession, trade, or business. A covered health care provider may not be restricted after the relationship ends, except in the sale of a practice. | Mont. Code Ann. § 28-2-703; Mont. Code Ann. § 28-2-724 |
| Nebraska | Valid only if not injurious to the public, no greater than reasonably necessary to protect a legitimate interest, and not unduly harsh on the employee. | Professional Business Services Co. v. Rosno, 268 Neb. 99, 680 N.W.2d 176 (2004) |
| Nevada | Void unless supported by valuable consideration, no greater than the employer needs, free of undue hardship, and appropriate to the consideration. A court revises an overbroad covenant and enforces it as revised. | Nev. Rev. Stat. § 613.195 |
| New Hampshire | Void for a low-wage employee (an hourly rate at or below 200 percent of the federal minimum wage). A new hire who signs one as a condition of employment gets a copy before accepting the offer, or it is not enforceable. | N.H. Rev. Stat. Ann. § 275:70-a; N.H. Rev. Stat. Ann. § 275:70 |
| New Mexico | A health care practitioner's non-compete is unenforceable once the agreement, its renewal, or the employment ends. | NMSA 1978, 24A-4-2(A) |
| New York | Enforced only if no greater than is required to protect the employer's legitimate interest. A broadcasting industry employer may not require one as a condition of employment. | BDO Seidman v Hirshberg, 93 NY2d 382 (1999); N.Y. Lab. Law § 202-k |
| North Dakota | Void to the extent it restrains a lawful profession, trade, or business. The seller of goodwill may agree not to compete within a reasonable area and time, if the buyer carries on a like business there. | N.D.C.C. § 9-08-06 |
| Oklahoma | A former employee may work in the same or a similar business as long as they do not directly solicit the former employer's established customers. | Okla. Stat. tit. 15, § 219a |
| Oregon | Void unless the statute's conditions are met, including a written offer received at least two weeks before the first day and a protectable interest. At most 12 months from termination. The salary threshold is a base of $100,533 that is adjusted annually for inflation, so the figure in force for the year before termination is higher; our sources do not give the current amount. | Or. Rev. Stat. 653.295(1); Or. Rev. Stat. § 653.295 |
| Pennsylvania | No general non-compete statute or case in our sources. Health care practitioners only: a health care practitioner noncompete is void, except one of no more than one year when the practitioner was not dismissed by the employer. | Act of Jul. 17, 2024, P.L. 846, No. 74, § 4 |
| Rhode Island | Not enforceable against nonexempt employees, students in internships or short-term jobs, employees age 18 or younger, or low-wage employees. A restriction on a physician's practice is void. | R.I. Gen. Laws § 28-59-3(a); R.I. Gen. Laws § 5-37-33(a) |
| South Carolina | No general non-compete statute or case in our sources. Motor vehicle and motorcycle dealers only: unreasonable noncompetition restrictions on a motor vehicle or motorcycle dealer or franchisee are unlawful. | S.C. Code Ann. § 56-15-70; S.C. Code Ann. § 56-16-120 |
| South Dakota | An employee may agree not to compete, and not to solicit existing customers in a specified area, for up to two years after the agreement ends, if the employer continues a like business there. | S.D. Codified Laws § 53-9-11 |
| Tennessee | No general non-compete statute or case in our sources. Covered healthcare providers only (not emergency medicine physicians): a signed writing, two years or less, within ten miles of the primary practice site or limited to the employer's facilities. | Tenn. Code Ann. § 63-1-148 |
| Texas | Enforceable if ancillary to an otherwise enforceable agreement and reasonable in time, geographical area, and scope of activity; a court reforms an overbroad covenant. For dentistry, nursing or physician assistant practice: a buyout, an end within one year, and five miles at most. | Tex. Bus. & Com. Code § 15.50; Tex. Bus. & Com. Code § 15.51; Tex. Bus. & Com. Code § 15.501 |
| Utah | For agreements entered into on or after May 10, 2016: no more than one year after employment ends, or void. Healthcare worker non-competes are barred on or after May 6, 2026; veterinarian non-competes are barred unless the veterinarian owns at least 5%. | Utah Code § 34-51-201 |
| Virginia | Barred for low-wage employees and health care professionals; a civil penalty of $10,000 applies for each violation. | Va. Code Ann. § 40.1-28.7:8 |
| Washington | Void unless annualized earnings exceed the statute's threshold (one hundred thousand dollars per year in its text; the dollar amounts are adjusted under Wash. Rev. Code § 49.62.040, and our sources do not give the current figure) and the terms are disclosed in writing by the acceptance of the offer. Over eighteen months after termination is presumed unreasonable. | Wash. Rev. Code § 49.62.020; Wash. Rev. Code § 49.62.020(2); Wash. Rev. Code § 49.62.040 |
| West Virginia | No general non-compete statute or case in our sources. Physicians only: a physician covenant runs no more than one year and thirty road miles, and is void if the employer ends the physician's employment. | W. Va. Code § 47-11E-2 |
| Wisconsin | Enforceable only if reasonably necessary to protect the employer; an unreasonable covenant is void even as to its reasonable parts. | Wis. Stat. § 103.465 |
| Wyoming | For contracts entered into on and after July 1, 2025: a covenant not to compete that restricts the right of any person to receive compensation for performance of skilled or unskilled labor is void, except the sale of a business, trade secrets, executive and management personnel and their professional staff, and limited recovery of relocation and training costs. Physician covenants are void. | Wyo. Stat. Ann. § 1-23-108; Wyo. Enrolled Act No. 87, S.F. 0107, 2025 Gen. Sess., § 2 |
Our sources hold no non-compete statute or case for Alaska, Mississippi, New Jersey, North Carolina, Ohio or Vermont, so they are left out of the table. Check the rules there with a local attorney before signing.
A Florida non-compete agreement is enforceable when it is in a writing signed by the person against whom enforcement is sought and is reasonable in time, area, and line of business (Fla. Stat. § 542.335).
Our Florida non-compete agreement page builds the form for an employer there.
A non-compete agreement can include a clause that ends it under set circumstances, such as a buyout or a change in role. Without such a clause, an employee who signed an enforceable agreement is generally bound by its terms. Disagreeing with a term does not cancel the agreement on its own.
If you disagree with a provision, start by talking to the employer about the unclear or overbroad wording and how to fix it. If negotiation fails, you can challenge the agreement in court, ideally with a lawyer's advice. Common grounds people raise include:
An overbroad agreement is not always thrown out. Texas has the court reform the covenant to the extent necessary to make its limits on time, area, and scope of activity reasonable (Tex. Bus. & Com. Code § 15.51), while Wisconsin voids an unreasonable covenant even as to any part that would be reasonable (Wis. Stat. § 103.465). In Illinois, an employee who prevails against an employer's claim to enforce a covenant not to compete shall recover all costs and reasonable attorney's fees (820 ILCS 90/25).
Whether any of these grounds succeeds depends on the state and the facts. Some states void most non-compete agreements outright, so ask a lawyer in your state before you act.
Fill out a non-compete agreement in the order of its parts: the parties and date, the restrictive terms, the employee acknowledgments, any release option, the governing jurisdiction, and the signatures. Keep each part specific, because specific terms are easier to enforce and harder to dispute.
Our free online builder walks you through the same sequence, and the finished template is ready to print and sign.
Yes, the non-compete agreement builder on this page is free to use, and you answer its questions to fill in the form. The agreement you create is easy to download as a PDF and print. You can save your progress and finish later.
None of the non-compete statutes cited on this page lists notarization among its conditions; at most they ask for a signed writing, as Florida does (Fla. Stat. § 542.335). A notary is usually not required, but a notarized signature makes it harder for anyone to deny signing later. See our notary acknowledgment form.
The limit depends on where the employee works: Oregon allows no more than 12 months from termination (Or. Rev. Stat. § 653.295), and Utah no more than one year for agreements entered into on or after May 10, 2016 (Utah Code § 34-51-201). Massachusetts allows 12 months after employment ends, or 2 years if the employee breached a fiduciary duty or unlawfully took the employer's property (Mass. Gen. Laws ch. 149, § 24L). Washington presumes a duration over eighteen months after termination unreasonable (Wash. Rev. Code § 49.62.020(2)). Alabama presumes restraints of two years or less reasonable (Ala. Code § 8-1-190).
The business can ask a court for an injunction, and some statutes make that easier: in Florida, the violation of an enforceable restrictive covenant creates a presumption of irreparable injury (Fla. Stat. § 542.335). Florida also enters no temporary injunction unless the person seeking enforcement gives a proper bond (Fla. Stat. § 542.335). Louisiana orders injunctive relief on proof of the failure to perform, without proof of irreparable injury (La. Rev. Stat. § 23:921).
In some places, yes: Virginia's covenant not to compete shall not restrict an employee from providing a service to a customer or client if the employee does not initiate contact (Va. Code Ann. § 40.1-28.7:8). Nevada bars restricting a former employee from serving a former customer or client who chose to leave and sought out the employee without being solicited, if the employee otherwise complies with the covenant's limits on time, area and scope of activity (Nev. Rev. Stat. § 613.195(2)). Oklahoma lets a former employee work in the same business as long as they do not directly solicit the former employer's established customers (Okla. Stat. tit. 15, § 219a).
The template is written for US employers, and the rules summarized on this page are American ones. For use in another country, such as India, have a local attorney check each clause before anyone signs.
General information, not legal or tax advice.
