Non-Compete Agreement Template
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?
›Can a non-compete be signed after employment starts?
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