Non-Compete Agreement Template

A non-compete agreement restricts a person from working for a competitor or starting a competing business for a set time in a set area. Easy Legal AI drafts a focused agreement designed around the limits courts actually enforce.

What courts consider reasonable

Enforceable non-competes protect a legitimate business interest — trade secrets, customer relationships, or goodwill — and go no further than necessary. Courts look at three limits together: duration, geography, and the scope of restricted activity.

  • Duration — six months to two years is typical; longer draws scrutiny
  • Geography — tied to where the business actually operates
  • Scope — limited to work that genuinely competes
  • Consideration — something of value given in exchange

State law varies sharply

California, Minnesota, North Dakota, and Oklahoma ban most employee non-competes. Many other states set salary thresholds or notice requirements. Non-competes signed as part of selling a business are enforced far more readily than those imposed on rank-and-file employees.

Where a full non-compete is unlikely to hold, non-solicitation and confidentiality clauses often provide the protection that matters most.

A note on legal advice

Easy Legal AI is not a law firm and does not provide legal advice or attorney representation. This page and the documents it creates are self-help tools. Laws differ by state and change over time — for a high-value dispute or an unusual situation, have a licensed attorney in your state review the document before you rely on it.

Frequently asked questions

›Are non-competes still legal after the FTC rule?
The FTC's 2024 nationwide ban was set aside by a federal court and did not take effect. Enforceability continues to depend on state law.
›Can a non-compete be signed after employment starts?
In many states continued employment is sufficient consideration, but some require a raise, bonus, or other new benefit for a mid-employment non-compete to be valid.

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