Are electronic signatures valid for this agreement?

Yes. Electronic signatures are generally valid under the federal ESIGN Act and most state UETA laws if they show intent, consent, attribution, and retention. Confirm any consumer-disclosure requirements if the agreement relates to consumer financial or healthcare benefits.

Is a notary or witness always required?

Not usually for employment covenants, but some states or specific clauses may require notarization or witnesses for certain acknowledgements. Check state rules when a statute or company policy mandates notarization.

What makes a non-compete enforceable?

Enforceability depends on reasonableness in duration, geography, and scope, plus adequate consideration. Some states severely limit or disallow non-competes for certain employees, so tailor clauses to governing jurisdiction.

How do I revoke or cancel the agreement?

Revocation typically requires mutual agreement or a written amendment. Employers may provide release agreements; unilateral revocation by the employer may affect consideration and enforceability.

Digital signature versus electronic signature?

A digital signature is a cryptographic subset of electronic signatures that uses PKI for stronger non-repudiation. Electronic signatures more broadly include typed names, click-to-sign actions, and image overlays backed by an audit trail.

How long must I keep executed agreements?

Retain executed agreements for the term plus at least three years; retain health-related records six years and consult state rules for longer mandatory retention periods.

Electronic Signature
Templates
HR
Employee Covenant Agreement

Employee Covenant Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYEE COVENANT AGREEMENT

This Employee Covenant Agreement (the Agreement) is entered into by and between Employer Name: and Employee Name: (collectively, the Parties). The effective date of this Agreement is .

Personal Information

Full Legal Name Address Phone Email

Position Information

Job Title Department Reporting Manager

Start Date: Salary (Annual):

Employment History

Most Recent Employer

Company Name Title

From: To:

Primary Responsibilities Reason for Leaving

Previous Employer

Company Name Title

From: To:

Primary Responsibilities Reason for Leaving

Education

Degree Institution Graduation Date

References

Reference 1

Reference 2

Reference 3

Legal Disclosures

At-Will Employment: The Parties acknowledge and agree that employment is at-will unless a separate written agreement states otherwise. Employee understands that either the Employer or Employee may terminate the employment relationship at any time, with or without cause or prior notice.
I acknowledge the At-Will Employment statement

Equal Opportunity: Employer is an equal opportunity employer and does not unlawfully discriminate. Employee acknowledges receipt of this statement.
I acknowledge the Equal Opportunity statement

Authorization and Background Checks

Employee authorizes Employer to contact prior employers and references and to obtain consumer and investigative background information if permitted by law. Employee expressly consents to employment-related background checks to the extent authorized by applicable law.
I authorize prior employer and background checks

Covenants and Terms

1. Definitions. "Confidential Information" means all non-public information related to the Employer's business including, without limitation, customer lists, pricing, trade secrets, marketing plans, financial information, and product development data.

2. Confidentiality. Employee shall hold Confidential Information in strict confidence and shall not use or disclose Confidential Information except as necessary to perform job duties or with Employer's prior written consent. This obligation continues during employment and for a period of years after termination.

3. Non-Competition. During employment and for months following separation, Employee shall not directly or indirectly engage in a business substantially similar to Employer's within the geographic area described as . The scope of this covenant is reasonable to protect legitimate business interests and is subject to applicable law.

4. Non-Solicitation. Employee agrees that for months after termination Employee shall not (a) solicit or induce any customer or client of Employer to cease or reduce business with Employer, nor (b) solicit or hire any current employee of Employer.

5. Inventions; Assignment. Employee agrees to promptly disclose and assign to Employer all inventions, improvements, developments, and works of authorship conceived or developed during employment that relate to Employer's business or result from the use of Employer resources.

6. Return of Property. Upon termination, Employee shall immediately return all Employer property, materials, documents and Confidential Information in Employee's possession.

7. Remedies. Employee acknowledges that breach of the covenants may cause Employer irreparable harm for which monetary damages are an insufficient remedy, and Employer shall be entitled to injunctive relief in addition to all other remedies available at law or equity.

8. Severability; Governing Law. If any provision of this Agreement is held invalid, the remaining provisions shall remain enforceable. This Agreement shall be governed by the laws of the State of .

Employee Certification

I certify that all information provided in this Agreement, and in the Personal Information and Employment History sections, is true and complete to the best of my knowledge. I understand that any material misstatement or omission may constitute grounds for discipline or termination.

Employee Acknowledgment I certify that the information provided is true and authorize Employer to verify information as needed.

Acknowledgement of Covenants

By signing below, Employee acknowledges receipt of this Agreement, agrees to be bound by its terms, and confirms that the covenants are supported by sufficient consideration in the form of employment and other benefits acknowledged by the Parties.

Employer Printed Name:

By:

Date:

Employee Printed Name:

By:

Date:

What an Employee Covenant Agreement Is and when it’s used

An Employee Covenant Agreement is a written contract between an employer and an employee that sets out post-hire obligations such as confidentiality, non-solicitation, non-compete restrictions, intellectual property assignment, and return-of-property duties. The document defines scope, duration, geographic limits, and consideration, and can be standalone or part of an offer letter. When signed electronically in the United States it may meet legal requirements under the ESIGN Act and state electronic signature laws, provided the signature demonstrates intent, consent, attribution, and durable record retention.

Why employers and employees use an Employee Covenant Agreement

A well-drafted covenant clarifies expectations, protects confidential information and trade secrets, assigns intellectual property, and reduces litigation risk by documenting consideration and limitations.

Who typically prepares and signs this agreement

Common users include HR teams, hiring managers, and legal counsel who need consistent employment terms and post-employment protections.

Human resources and talent acquisition teams responsible for onboarding and recordkeeping.
In-house or outside employment counsel drafting enforceable, compliant covenant terms.
Employees, contractors, or prospective hires who will be bound by post-employment restrictions.

New hires, contractors, and executives commonly sign these documents; the exact signers depend on role, seniority, and state law.

Representative signatories and reviewers

HR Manager

An HR Manager typically initiates the form, ensures the employee receives the document, records execution in personnel files, and coordinates any notarization or witness requirements specified by state law or company policy.

Employment Counsel

Employment Counsel reviews covenant language for enforceability, advises on state-specific limitations such as non-compete restrictions, and recommends specific consideration and scope language to reduce future litigation risk.

Essential fields to include in the Employee Covenant Agreement

Employee Name: Full legal name

Employer Name: Legal entity name

Effective Date: MM/DD/YYYY

Position Title: Role and duties

Consideration: Salary, bonus, or other consideration

Term/Duration: Length of restrictions

Core components of a professional Employee Covenant Agreement

A clear structure makes enforcement and compliance simpler while reducing ambiguity for all parties.

Confidentiality

Defines protected information, permitted disclosures, exclusions, and obligations to safeguard trade secrets and proprietary data during and after employment.

Non-Solicitation

Prohibits soliciting clients, customers, or employees for a defined period and geographic scope after separation from employment.

Non-Compete

Limits post-employment competitive work where permitted; must be reasonable in duration, geography, and scope to improve enforceability.

IP Assignment

Assigns inventions, work product, and copyrights created during employment to the employer, specifying reporting and disclosure obligations.

Consideration

Specifies the value exchange (employment, promotion, bonus) that supports the covenant’s enforceability under state law.

Remedies

Lists available employer remedies such as injunctive relief, damages, attorneys’ fees, and the effect of severability of unenforceable provisions.

Step-by-step: preparing and executing the Employee Covenant Agreement

Follow this sequence to prepare, review, and record execution efficiently and reduce legal risk.

01

Draft: Assemble standard language and tailor restrictions to job duties.
02

Review: Have employment counsel check enforceability and state compliance.
03

Sign: Obtain signatures and date; capture electronic audit trail if e-signed.
04

Store: Retain executed copy in HR and legal records with access controls.

Customizing an online signing workflow for this agreement

Configure fields and authentication to match company policy and compliance needs when sending electronically.

Field	Configuration
Template	Create a reusable template with locked clauses for consistency
Conditional Fields	Show non-compete only for eligible roles via conditional logic
Authentication	Use email plus SMS code or stronger verification for sensitive roles
Attachments	Attach offer letter, job description, or consideration evidence

Where to send and how the agreement flows after signing

Decide routing and distribution to keep records complete and accessible for audits or disputes.

Employee: Receives executed copy and retains for personal records
HR File: Stores original executed agreement in personnel folder
Legal: Keeps master copy and enforces or interprets terms
Payroll/Benefits: Receives notice where consideration impacts compensation reporting

Secure distribution and format requirements for eSigning

Use secure file formats and established integrations to minimize friction and maintain an auditable record when collecting electronic signatures.

File Formats: PDF and DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Security: Audit trail, TLS encryption

Key timing and processing expectations

Track dates that affect enforceability, payroll, and record retention so obligations and reporting remain timely.

Effective Date Entry:

Set on document signature date or specified start date

Signing Deadline:

Align signing before start of employment or as part of offer acceptance

Consideration Timing:

Deliver any promised consideration at or before execution

I-9/Tax Records:

Retain related employment forms per federal retention rules

Policy Review Cycle:

Review templates annually or when state law changes

Key milestones from drafting to record retention

A sequential milestone view helps coordinate internal reviewers and signers.

01

Drafting

Employer drafts tailored covenant language and inserts role-specific details

02

Internal Review

Legal and HR review for clarity and compliance

03

Execution

Parties sign and date; capture audit trail for e-signatures

04

Recordkeeping

Store executed copy in HR and legal repositories with access controls

Common errors to avoid when preparing the agreement

Using overly broad geographic or activity descriptions that make a non-compete unenforceable in some states.
Failing to record or deliver clear consideration for post-employment restrictions, especially for existing employees.
Omitting required signature details or dates when using electronic signatures, leaving intent or attribution unclear.
Not updating template language after a change in state law or a significant change in role responsibilities.

Potential consequences of incorrect or incomplete agreements

Unenforceable Clause: Employee can ignore restriction

Litigation Exposure: Employer faces damages and defense costs

Injunctive Relief: Court may issue injunction or deny relief

Tax Reporting: Incorrect consideration triggers payroll issues

Signature Defect: Invalid e-signature risks non-recognition

Regulatory Risk: Industry rules may add compliance obligations

Notarization and witness checklist for authentication

When notarization or witness signatures are required, follow a consistent, documented sequence to preserve authentication and validity.

01

Determine Need

Confirm whether state law or company policy requires a notary or witnesses

02

Select Notary

Arrange in-person notary or RON session depending on state allowance

03

Identity Proofing

Collect photo ID and any identity verification required for RON

04

Witness Signing

Have required witnesses sign and print names where state law mandates

05

Notary Acknowledgement

Notary completes acknowledgement block and signs

06

Audio/Video Record

For RON, record session and retain per state retention rules if required

07

File with HR

Return executed originals or certified electronic records to HR file

08

Secure Storage

Store notarized records with access controls and retention schedule

Common eSignature providers for Employee Covenant Agreements

Pricing and features vary; signNow appears first for direct product comparison. Check vendor plans for volume discounts and enterprise features.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Real-world examples of digital signing in HR processes

Organizations of different sizes use electronic signing to speed hiring and reduce paperwork; these examples show practical benefits without endorsing any single vendor.

Xerox — Operations

Kodi-Marie Evans, Director of NetSuite Operations, used an e-signature integration to streamline internal approvals.

The platform supported NetSuite integration and flexible formats.
The change reduced turnaround time and ensured the right signatures were attached to the right records across systems.

Optica Ventures — COO

Brian Fitzgibbons noted an easy-to-use interface for internal teams and external signers.

Simplicity improved recipient response rates.
The team processed offers and covenants online, preserving compliance and reducing in-person steps while maintaining security.

How to update or amend an existing Employee Covenant Agreement

Use a controlled amendment process so changes remain enforceable and documented for both HR and legal review.

01

Identify Change:

Document the clause or term to modify

02

Draft Amendment:

Prepare a concise amendment or restatement

03

Legal Review:

Have counsel confirm enforceability and consideration

04

Obtain Signatures:

Get dated signatures from all parties

05

Notarize If Needed:

Obtain notarization or witnesses where required

06

Distribute:

Circulate executed amendment to HR and employee

Frequently asked questions about Employee Covenant Agreements

Common questions focus on enforceability, electronic signing, notarization needs, state variations, and how to revoke or amend covenants.

Need help? Contact support

Are electronic signatures valid for this agreement?
Yes. Electronic signatures are generally valid under the federal ESIGN Act and most state UETA laws if they show intent, consent, attribution, and retention. Confirm any consumer-disclosure requirements if the agreement relates to consumer financial or healthcare benefits.
Is a notary or witness always required?
Not usually for employment covenants, but some states or specific clauses may require notarization or witnesses for certain acknowledgements. Check state rules when a statute or company policy mandates notarization.
What makes a non-compete enforceable?
Enforceability depends on reasonableness in duration, geography, and scope, plus adequate consideration. Some states severely limit or disallow non-competes for certain employees, so tailor clauses to governing jurisdiction.
How do I revoke or cancel the agreement?
Revocation typically requires mutual agreement or a written amendment. Employers may provide release agreements; unilateral revocation by the employer may affect consideration and enforceability.
Digital signature versus electronic signature?
A digital signature is a cryptographic subset of electronic signatures that uses PKI for stronger non-repudiation. Electronic signatures more broadly include typed names, click-to-sign actions, and image overlays backed by an audit trail.
How long must I keep executed agreements?
Retain executed agreements for the term plus at least three years; retain health-related records six years and consult state rules for longer mandatory retention periods.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now