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Employee Covenant Form

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EMPLOYEE COVENANT FORM

Personal Information

Position Information

Employment History (Most Recent First)

Education

Professional References

Reference 1 — Name:   Phone:   Email:

Reference 2 — Name:   Phone:   Email:

Reference 3 — Name:   Phone:   Email:

Covenants and Agreements

Confidentiality: The Employee acknowledges that during employment they will have access to confidential, proprietary and trade secret information of the Employer, including but not limited to customer lists, pricing, marketing strategies, technical information, formulas, software, and business processes (collectively "Confidential Information"). The Employee agrees that during and after employment the Employee will not disclose, use, or permit the use of Confidential Information except as required in the performance of duties for the Employer. The Employee shall take all reasonable measures to protect Confidential Information and shall promptly return all materials containing Confidential Information upon termination.

Intellectual Property Assignment: The Employee agrees to promptly disclose and assign to the Employer all inventions, improvements, developments, works of authorship, and trade secrets, whether or not patentable or registrable, made or conceived by the Employee alone or with others during the period of employment that relate to the Employer's business or result from work performed for the Employer. The Employee will execute all documents necessary to effectuate such assignment.

Non-Solicitation: During employment and for a period of twelve (12) months following the termination of employment for any reason, the Employee will not directly or indirectly solicit, contact, or attempt to solicit the Employer's employees or independent contractors for purposes of inducing them to terminate their relationship with the Employer, nor will the Employee solicit the Employer's clients or customers with whom the Employee had material contact on behalf of the Employer for the purpose of providing products or services competitive with those offered by the Employer.

Conflicts of Interest and Outside Employment: The Employee shall avoid any activity, investment, or outside employment that conflicts with the Employee's obligations to the Employer or that could impair the Employee's ability to perform their duties. The Employee must disclose in writing any outside employment or consulting arrangement that may reasonably be considered a conflict.

Return of Property: The Employee shall promptly return all Employer property, including documents, keys, devices, and materials, upon request or upon termination of employment. The Employer may deduct the reasonable cost of unreturned property from final compensation to the extent permitted by applicable law.

Remedies; Injunctive Relief: The Employee acknowledges that a breach of the covenants contained in this Agreement would cause irreparable harm to the Employer for which monetary damages would be inadequate, and the Employer shall be entitled to seek injunctive relief and any other remedies available at law or in equity without posting bond.

Severability; Construction: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. If a court finds any covenant unenforceable as written, the parties agree that the court may modify the covenant to the extent necessary to render it enforceable, and such modified covenant shall be enforceable.

Legal Disclosures

At-Will Employment: Unless expressly set forth in a separate written agreement signed by an authorized representative of the Employer, the Employee acknowledges and agrees that the employment relationship is at-will. Either party may terminate the relationship at any time, with or without cause or advance notice.

Equal Opportunity: The Employer is an equal opportunity employer. Employment decisions are made without regard to race, color, religion, sex, national origin, age, disability, genetic information, or any other characteristic protected by applicable law.

Acknowledgement, Certification, and Authorization

I certify that all information provided in this form is true, complete, and correct to the best of my knowledge. I understand that false statements, omissions, or misrepresentations may be grounds for disciplinary action, up to and including termination.

I expressly authorize the Employer and its agents to contact my former employers, educational institutions, references, and other listed parties to verify any information provided. I authorize such parties to release to the Employer any and all information concerning my prior employment, education, qualifications, and background, and I release such parties from any liability for providing such information.

I consent to background checks, credit checks (where job-related and permitted by law), and drug screening as required by the Employer as a condition of employment. I understand that continued employment may be contingent upon satisfactory results of such checks.

Applicant Certification

I acknowledge receipt of this Employee Covenant Form and certify my understanding of, and agreement to, the terms contained herein. I understand that by signing below I enter into binding covenants with the Employer, and I have had the opportunity to review this document and seek independent counsel if I so choose.

Employee Printed Name:

By:

Date:

Employer Printed Name:

By:

Date:

Enter text✕

What the Employee Covenant Form Is and when it's used

An Employee Covenant Form is a written agreement between an employer and an employee that records obligations such as confidentiality, non-solicitation, non-compete terms, intellectual property assignment, and any post-employment restrictions. It sets scope, duration, geographic limits, and consideration and is signed at hire or during employment. The form clarifies expectations, preserves trade secrets and client relationships, and provides a contractual basis for remedies if the employee breaches agreed restrictions, subject to state law and reasonableness doctrines.

Why a clear Employee Covenant Form matters

A well-drafted covenant reduces ambiguity, supports enforceability in court, and protects business assets. It balances employer interests and employee mobility and must align with ESIGN and applicable state contract law to be effective when executed electronically.

Why a clear Employee Covenant Form matters

Who commonly prepares and signs this form

HR, in-house counsel, and hiring managers typically prepare and issue Employee Covenant Forms during recruiting or onboarding to document restrictive obligations.

  • HR managers — draft, distribute, and retain signed covenants for new hires and role changes to support compliance and audits.
  • In-house counsel — review scope and enforceability, tailor choice-of-law provisions, and advise on state-specific restrictions or required notice.
  • Hiring managers — ensure job offers include the covenant when required and confirm the employee receives reasonable time for review.

Keep signed copies in personnel records and provide a countersigned copy to the employee; involve legal counsel when state law or senior roles require tailored language.

Primary signers and stakeholders

HR Manager

Responsible for issuing the covenant, tracking acceptance, maintaining the signed record in the personnel file, and coordinating with legal when disputes or compliance questions arise.

General Counsel

Reviews and approves covenant language for enforceability, advises on governing law and consideration, and handles enforcement or litigation strategy when breaches occur.

Security and compliance elements to include or verify

Encryption: AES-256 at rest
Transport: TLS 1.2 / 1.3
Certifications: SOC 2 Type II, ISO 27001
HIPAA: BAA available if needed
Audit Trail: Full timestamped log
Authentication: Multi-factor options

Essential clauses to include in an Employee Covenant Form

A complete covenant clearly defines the restrictive clauses, temporal and geographic scope, consideration, and remedies while specifying governing law and signature blocks for all parties.

Confidentiality

Define protected information, permitted disclosures, handling requirements, exceptions for required disclosures, and return or destruction obligations at termination.

Non-solicitation

Specify prohibited solicitation of clients, customers, or employees, describe duration after separation, and set boundaries by client lists or account definitions.

Non-compete

State prohibited competing activities, geographic limits, duration, and carve-outs; ensure reasonableness to improve enforceability under state law.

IP Assignment

Assign inventions and work product created during employment, identify pre-existing IP, and require prompt disclosure and cooperation on filings.

Consideration

Document the consideration supporting the covenant, such as continued employment, signing bonus, promotion, or other bargained-for benefits.

Remedies

Describe remedies such as injunctive relief, liquidated damages where valid, attorneys' fees, and survival of confidentiality provisions.

Step-by-step: completing and executing the covenant

Follow these sequential steps to prepare, review, sign, and retain a compliant Employee Covenant Form.

  • 01
    Draft: Populate clause templates and tailor scope to role.
  • 02
    Legal review: Have counsel assess state enforceability and consideration.
  • 03
    Sign: Obtain employee signature and date of execution.
  • 04
    Retain: Store signed copy in personnel records with an audit trail.

Typical eSigning workflow for an Employee Covenant Form

A standard electronic signing flow keeps each step auditable and reduces time to completion while preserving legal validity under ESIGN.

  • Upload: Add the covenant PDF or DOCX to the signing platform.
  • Place fields: Insert signature, date, and initial fields for each signer.
  • Send: Deliver the document via secure email or signing link.
  • Complete: Capture signer authentication, signature, and certificate of completion.

Technology and format considerations for electronic execution

Choose a platform that supports PDF and DOCX formats, audit trails, and the required signer authentication level for your jurisdiction and industry.

  • Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
  • Formats: PDF, DOCX, HTML, Excel
  • Authentication: Email, SMS, KBA, SSO options

Timing and typical deadlines when issuing covenants

Use clear timing rules so employees have reasonable time to review and sign; timing affects enforceability and notice obligations.

Offer stage delivery:

Provide covenant with the employment offer when possible.

Pre-start review period:

Allow at least several days for employee review.

Execution date:

Record the signature date as the effective date.

Post-sign retention:

Keep the executed form in personnel files.

Review intervals:

Reassess for role changes or new consideration.

Common preparation mistakes to avoid

  • Overbroad restrictions — using vague geographic or activity definitions that courts may refuse to enforce.
  • Insufficient consideration — failing to document what the employee receives in return for restrictive covenants.
  • Ignoring state law — using a one-size-fits-all clause that conflicts with specific state statutory limits.
  • Poor signature records — lacking clear evidence of intent, consent, attribution, or retention for e-signed forms.

Consequences of an incorrect or unenforceable covenant

Unenforceability: Covenant may be void
Injunction: Court may enjoin activity
Monetary Damages: Compensatory awards possible
Attorney Fees: Fee exposure in some cases
Operational Risk: Loss of client protections
Regulatory Risk: State penalties or scrutiny

How an Employee Covenant Form differs from related documents

Compare common document types to pick the right instrument for your objective — confidentiality, non-compete, or IP assignment.

Criteria Document Type Primary Purpose
Employee Covenant comprehensive restrict conduct and assign ip
NDA limited protect confidential information only
Non-compete only narrow prevent competitive employment
IP Assignment specific transfer invention rights

eSignature vendor comparison for executing Employee Covenant Forms

Compare baseline pricing and core capabilities for common eSignature providers. signNow is listed first as a pricing reference; vendor features and compliance vary by plan.

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 Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Key milestones from drafting to enforcement

Track milestones so each phase—from offer to enforcement—has clear owners and deadlines to preserve rights and evidence.

01

Drafting and Approval

Legal drafts terms and HR approves final language

02

Delivery to Candidate

Provide covenant with offer and supporting documents

03

Execution

Employee signs and dates the agreement

04

Post-execution Review

Store signed copy and audit trail for future enforcement

Frequently asked questions about Employee Covenant Forms

Answers address enforceability, electronic signatures, notarization, revisions, refusal to sign, and recordkeeping to reduce common points of friction.


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