Parties
Identify full legal names of employer and employee, corporate entity type, and addresses; use exact names as on formation documents or IDs.
Non-compete agreements protect trade secrets, customer relationships, and investment in employee training while clarifying post-employment obligations. For employees, a clear agreement sets expectations and any compensation tied to restrictive covenants.
Ensure the signing parties understand the agreement terms, the consideration provided, and which state law governs enforcement before signing.
Identify full legal names of employer and employee, corporate entity type, and addresses; use exact names as on formation documents or IDs.
Define specific activities prohibited after termination (e.g., soliciting clients, performing similar services) with objective language to avoid overbreadth.
Specify precise geographic limits (cities, counties, states) based on where the employer conducts business to support reasonableness.
Set a time-limited period (months or years). Courts often prefer shorter, job-related durations; tailor duration to role and legitimate business need.
Describe the consideration (employment, promotion, bonus, severance) given in exchange for the covenant; state timing and amount when applicable.
Include a severability and reformation clause allowing courts to narrow overly broad terms rather than void the entire agreement.
| Field | Configuration |
|---|---|
| Signature Type | Electronic signature field with date and initials |
| Authentication Level | Email plus SMS code or ID verification for higher assurance |
| Conditional Fields | Show severance terms only if option selected |
| Reminders | Automatic reminders after 3 and 7 days |
Ensure the solution supports ESIGN and UETA compliance, secure storage (encryption at rest and in transit), and any industry addenda such as HIPAA.
| 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 | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| Envelope Cap | No envelope cap | 100 envelopes/user/year | Varies | Varies | Varies |
A mid-size SaaS company requires a one-year non-compete limited to the sales territory to protect client lists and commission structures
An employer offers six months' severance in exchange for a non-compete limited to direct solicitation of former clients