Delaware Non-compete Agreement Template

A Non-Compete Agreement is an official document aimed at protecting the employer from any potential competition from the employee. Companies choose to sign such contracts with the workers at the first hiring stages. This agreement restricts the employee from entering a particular market area (for example, starting their own business) or working for the current competitors.

Thus, the covenant not to compete template allows employers to preserve the production process details, including the company’s manufacturing technology and personal information about clients and customers, salaries, pricing, and even ideas and future product developments.

Like most official documents, the Non-Compete Agreement includes several obligatory points.

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Agreement Terms

These are specific conditions that every employee agrees to follow when signing an NCA. Usually, they include the following list of aspects:

1) Timeframe/Duration

This section refers to the period during which the worker is prohibited from violating the agreement after quitting. Usually, it is a short-term period (up to 2 years). However, some companies choose to sign long-term NCAs depending on the field and scope of work.

2) Content/Scope

The company shall specify certain activities or knowledge an employee is prohibited to use after leaving the organization for personal or someone else’s gain.

3) Compensation

Here, the employer must determine the amount a worker will have to pay in case of an agreement violation. Types and amounts of compensation may vary depending on the breach severity.

Parties Info, Signatures, and Dates

Parties are the sides to a Non-Compete Agreement. Usually, the employer is called “Company” while the employee is known as the “Recipient.”

Production Details/Confidentiality

NCA details and conditions may differ from state to state, as every local business has its own production peculiarities.

Delaware NCA Laws and Restrictions

The practice of signing an NCA is widespread in all US states, and Delaware is not an exception. However, each state has its legal peculiarities regarding compilation and signing procedures.

In Delaware, the employer cannot force physicians into signing the NCA when applying for another job. These specialists are considered essential for society, and no NCA shall undermine the overall social welfare. There are no other local state statutes that regulate the compiling or signing procedures of this type of contract.

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Published: Feb 10, 2021
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.