Non Competition Form Template for United States

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Key Requirements PROMPT example:

Non Competition Form

"I need a Non Competition Form for a senior software engineer position in our tech startup, covering California, New York, and Texas, with special focus on protecting our AI technology IP and a restriction period of 12 months starting from January 2025."

Document background
The Non Competition Form is a critical business document used to safeguard an organization's competitive advantages, trade secrets, and customer relationships in the United States. This agreement becomes relevant when hiring key employees, executives, or professionals who will have access to sensitive business information or strategic relationships. The document outlines specific restrictions on post-employment competitive activities, including time period, geographic scope, and prohibited activities. Given the complex legal landscape in the U.S., where enforcement varies significantly by state (with some states like California generally prohibiting such agreements), careful attention must be paid to state-specific requirements for reasonableness, consideration, and legitimate business interests. The agreement is particularly important in scenarios involving senior positions, specialized knowledge workers, or roles with access to proprietary information.
Suggested Sections

1. Parties: Identification of the employer and employee/contractor subject to the agreement

2. Background: Context of the agreement, employment relationship, and legitimate business interests being protected

3. Definitions: Key terms including 'Competitive Business', 'Restricted Period', 'Restricted Territory', and 'Confidential Information'

4. Scope of Non-Competition: Core restrictions on competitive activities, including specific prohibited actions

5. Duration and Geographic Limitations: Specific time period and geographical boundaries of the restrictions

6. Consideration: The compensation or benefit provided in exchange for the non-compete agreement

7. Acknowledgments: Employee's acknowledgment of reasonableness and receipt of consideration

8. Remedies: Available remedies for breach, including injunctive relief and damages

9. Severability: Provision allowing court modification of unenforceable terms while maintaining others

10. Governing Law: Specification of applicable state law and jurisdiction

11. Entire Agreement: Integration clause stating this document contains all terms of the non-compete agreement

Optional Sections

1. Garden Leave: Provision for paid leave during restricted period, commonly used in executive agreements

2. Customer Non-Solicitation: Additional restrictions on soliciting customers, if not covered in separate agreement

3. Employee Non-Solicitation: Additional restrictions on hiring/soliciting employees, if not covered in separate agreement

4. Continuing Obligations: Reference to ongoing obligations from employment agreement or other contracts

5. Assignment: Right to assign the agreement, particularly in case of company sale or reorganization

6. Choice of Forum: Specific court or jurisdiction for dispute resolution

7. Attorney's Fees: Provision for recovery of legal fees in enforcement actions

Suggested Schedules

1. Schedule A - Restricted Territory: Detailed definition of geographic areas covered by restrictions

2. Schedule B - Competitive Business: Specific list of prohibited competitor companies or business types

3. Schedule C - Consideration: Details of compensation or benefits provided for the non-compete

4. Appendix 1 - State-Specific Provisions: Additional or modified terms required by specific state laws

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Technology

Healthcare

Financial Services

Professional Services

Manufacturing

Retail

Telecommunications

Biotechnology

Engineering

Consulting

Sales and Marketing

Research and Development

Education and Training

Relevant Teams

Human Resources

Legal

Executive Leadership

Sales

Research and Development

Product Development

Business Development

Engineering

Marketing

Operations

Finance

Information Technology

Customer Success

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Senior Software Engineer

Account Executive

Research Scientist

Product Manager

Business Development Manager

Senior Consultant

Technical Lead

Regional Manager

Department Head

Vice President

Senior Analyst

Marketing Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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