Non Solicitation Agreement Template for United States

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Key Requirements PROMPT example:

Non Solicitation Agreement

"I need a Non Solicitation Agreement to protect my software company from a departing senior sales executive who will be leaving on March 1, 2025, specifically preventing them from poaching our enterprise clients and sales team members in the Greater Boston area."

Document background
The Non Solicitation Agreement serves as a crucial business protection tool in the United States, commonly implemented when employees leave an organization or during business partnerships. It helps protect valuable business relationships, customer connections, and workforce stability by preventing solicitation for a specified period. While federal law provides a framework, enforcement varies significantly by state, with some jurisdictions requiring specific provisions for validity. This agreement typically includes detailed scope definitions, temporal and geographic restrictions, and must be carefully drafted to ensure enforceability within the relevant jurisdiction.
Suggested Sections

1. Parties: Identification of the contracting parties and their legal status

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Scope of Non-Solicitation: Specific prohibited activities and covered relationships

5. Duration: Time period for which restrictions apply

6. Geographic Scope: Territorial limitations of the agreement

7. Remedies: Consequences of breach and enforcement mechanisms

Optional Sections

1. Garden Leave Provisions: Optional provisions for paid leave period after employment termination, typically used for senior executives in permitting jurisdictions

2. Consideration: Optional section detailing additional compensation or benefits provided, included when required by state law or to enhance enforceability

3. Severability: Optional provisions for partial enforcement if portions are invalid, particularly important in jurisdictions with strict enforcement requirements

Suggested Schedules

1. Schedule A - List of Protected Customers: Detailed list of specific customers covered by non-solicitation provisions

2. Schedule B - List of Protected Employees: Detailed list of specific employees covered by non-solicitation provisions

3. Schedule C - Territorial Maps: Visual representation and description of geographic restrictions applicable to the agreement

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

Industries

Sherman Antitrust Act: Federal law that prohibits anticompetitive business practices. Must ensure non-solicitation terms don't violate antitrust provisions by unreasonably restraining trade.

Federal Trade Commission Act: Federal legislation that prohibits unfair methods of competition and deceptive practices. Non-solicitation agreements must not constitute unfair competition.

Defend Trade Secrets Act (DTSA): Federal law providing uniform protection for trade secrets. Relevant when non-solicitation provisions are linked to protection of trade secrets.

California Business and Professions Code �� 16600: California state law that generally voids non-competition agreements and significantly limits non-solicitation provisions.

Massachusetts Garden Leave Law: Massachusetts law requiring garden leave provisions in restrictive covenants, potentially affecting non-solicitation terms.

Illinois Freedom to Work Act: Illinois legislation setting restrictions on employment-related agreements, including requirements for non-solicitation provisions.

Fair Labor Standards Act: Federal law establishing wage and hour standards, which must be considered when implementing restrictions on employee activities.

National Labor Relations Act: Federal law protecting employees' rights to organize and bargain collectively, which may impact the scope of non-solicitation restrictions.

State-Specific Duration Requirements: Various state laws limiting the acceptable duration of non-solicitation restrictions, typically requiring them to be reasonable in time scope.

Geographic Scope Restrictions: State-specific limitations on the geographic reach of non-solicitation agreements, requiring reasonable territorial limits.

Consideration Requirements: Legal requirement that non-solicitation agreements must be supported by adequate consideration, varying by state law.

Legitimate Business Interest Test: Legal standard requiring that non-solicitation restrictions must protect legitimate business interests to be enforceable.

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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