Vermont Non-compete Agreement Template

A Vermont non-compete agreement is a written contract between a company and an employee or contractor. It protects the company’s intellectual property and commercially valuable data and safeguards it from unfair competitors. You can create the document online with the template below or download it as a PDF.

Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current law. If you notice an error or outdated information, please contact us.

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What a Vermont Non-compete Agreement Protects

Information protection is significant for firms and corporations. Intellectual property is sometimes valued more than physical property in our age. With the Vermont non-compete agreement’s help, a company can prohibit its employees from distributing its information to third parties and using it for others’ gain and benefit.

The company’s confidential data may include the following:

  • Business practices and processes
  • Customer and consumer lists
  • Employees’ personal information and lists of employees
  • Company’s products and services
  • Company’s developments, inventions, and ideas
  • Other information of commercial value that the company wants to protect.

Besides, a non-compete agreement may prohibit its employees from participating in similar activities or produce similar products and services, which is banning competition with the subject company. But this requirement must be well substantiated, applied only for a particular time, and cover a limited geographic area.

But even in limited circumstances, this non-competition clause can hinder an employee’s career, so they should carefully study it before signing. This agreement is valid only if both parties have signed it. While one party is the company itself, the other party is either an employee or a company’s contractor.

Tip: Before you sign, check that the names, addresses and dates in the agreement match each person’s ID and your own records.

Key Components of a Vermont Non-compete Agreement

In Vermont, as in some other states in the United States, there are no specific laws governing this document. When drafting a non-compete agreement, the company’s responsible representative must define the following components:

  • Non-Compete Terms. The employer notes which information is precisely applicable to non-disclosure. The employer has the right to specify business practices, information about clients, employees, intellectual property, or any other specific requirements.
  • Time and Geographic Restrictions. There should be clear timelines and location limitations set out in the agreement. These restrictions must be justified, and, in case of disagreement, both parties can appeal to them.
  • Buyout Agreement (Option). The parties may agree that the company will not require compliance with the subject employee’s non-compete agreement upon payment of a predetermined amount.
  • Confidential information. The employee must be aware of which information is considered confidential.
  • Disagreement with the NCA. In case of a dispute or non-compliance with the agreement, either party can take legal action to resolve the situation.

Both parties are obliged to study the document carefully before signing it. Once they sign it and show their consent, the agreement comes into force.

Vermont Non-compete Laws and Restrictions

Although Vermont does not have local laws governing this agreement, the document still has to be drafted per specific regulations. All components and limitations in the contract must be reasonably reasonable and include the following clauses:

Time Limit

The agreement cannot be unlimited or too prolonged; the court may consider this agreement unlawful and cancel its effect.

Restricting Competition in Similar Products and Services

Restrictions can only apply to the same professional area. All limitations concerning unrelated areas are unacceptable and void in Vermont. If the court rules that the services or products are not similar, it may invalidate the agreement.

Geographic Restriction

The restriction may not apply to the entire world or the entire United States. The geographic limitation, like everything else, should be reasonable.

Signing and Sharing the Agreement

This agreement must be clear to both parties and agreed upon between them. The clearer and simpler its form is, the better. Both parties must have an authorized copy of the signed agreement.

Frequently Asked Questions

What is a Vermont non-compete agreement?

It is a written contract between a company and an employee or contractor. It protects the company’s confidential information, such as business practices and customer lists, and sets limits on competing with the company.

Who signs the agreement?

One party is the company, and the other is an employee or a contractor. Each side should keep a signed copy.

Can I fill in the template on my computer?

Yes. Download the PDF and complete it with the FormsPal PDF editor, or print it and fill it in by hand.

What information does the agreement protect?

A company may want to protect several kinds of information:

  • Business practices and processes
  • Customer lists
  • Employee information
  • Products and services
  • Inventions and ideas

Who uses a non-compete agreement template?

Employers use it when they want to protect business information from competitors. Employees and contractors read it to see exactly what they are agreeing to before they sign.

How does the online option work?

You answer a few simple questions, and the builder makes your document in minutes. You can save your progress, finish on any device, then download and print the result.

What should I do after both sides sign?

Give each person a signed copy and store your own copy somewhere safe. Write down the date you signed so you can find it later.

General information, not legal or tax advice.

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Published: May 26, 2022
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.