Hawaii Non-compete Agreement Template

In the United States, including Hawaii, when a company hires someone to execute duties tied to confidential data, some legal forms may be signed. The Hawaii non-compete agreement (or NCA) is one of such forms.

This is an agreement between two parties that sets conditions under which the worker will partner with the company. It is vital for plenty of work fields to keep certain information under control or even hidden. Having such an agreement signed by the employee allows the entity to set a penalty or other punishment if they violate the contract.

Regardless of the state where the document is signed, each non-compete template contains the following.

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Parties’ Details, Dates, and Signatures

Usually, both parties write their names, signatures, and the date when they sign the document. Without both signatures, the document would not be valid.

Agreement Terms

Every non-compete agreement should state the terms when it is effective, and the obligor has to follow the written conditions.

In non-compete agreements, one may find various conditions tied to the job: from the items included in the “Confidential information” to the “Purchase option” where the entity lets the employee end the contract by paying a certain sum in US dollars.

Usually, parties in such agreements are named “Company” (an entity that hires someone) and “Recipient” (an employee, a partner, and the like).

Almost all American states have their own norms and laws regulating non-compete agreements. However, some states have no rules regarding the topic. The rules usually differ by the field where the company and the recipient work. For instance, in some states, people in specific fields cannot sign such agreements (doctors, cosmetologists, broadcasters, and other jobs). The Hawaii non-compete agreement also has some restrictions and rules to follow if you decide to sign it.

Hawaii NCA Laws and Restrictions

Norms regarding unlawful practices in business and unfair competition are included in Chapter 480, Section 480-2 of the Hawaii Revised Statutes.

Non-compete agreements are mentioned in Chapter 480, Section 480-4. According to this section, such agreements cannot be signed by any employee of any company that works in the technology field.

The same Section prescribes that, in general, non-compete agreements in Hawaii should be adequate in their terms. Workers who sign such contracts should not face unreasonable difficulties, and the document itself has to be an auxiliary paper that helps reach a lawful aim. This aim should not contradict the Hawaii Revised Statutes (in particular, Chapter 480 of the Statutes).

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Published: Feb 10, 2021