Employee Non-compete Agreement

Video Tutorial How to Fill Out Employee Non-compete Agreement

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Questions & answers

California - Non-compete clauses are not enforceable under California law. However, LegalNature's non-compete agreement may still be used to prohibit the employee from soliciting customers and other employees away from the employer.
The Employee specifically agrees that for a period of _____ [months/years] after the Employee is no longer employed by the Company, the Employee will not engage, directly or indirectly, either as proprietor, stockholder, partner, officer, employee or otherwise, in the same or similar activities as were performed for
To be enforceable, the non-compete agreement should be in writing. Some states may require this. However, even when it is not technically required, it is much easier to prove the terms of the agreement when there is a written memorialization of the document. Additionally, it should be signed by the employee.
Duration: Long-term noncompete agreements rarely hold up in court. Typical agreements are two years or less, the most common being six months to a year. They can also include a severance option if the employee is terminated. Scope: This clause must be specific as to the restricted work and particular services.
Ask for an explanation of the company's interests in having you sign a non-compete agreement. If the company is concerned about protecting trade secrets, it might agree to replace a non-compete clause with a beefed-up nondisclosure clause that would prevent you from taking research with you.
While an offer letter will generally not include non-compete or non-solicitation clauses, it can condition employment upon the signing of these documents at commencement of employment.