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Employment Agreement with Noncompetition and Confidentiality Provisions

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Employment Agreement with Director of Child Care Center
including Non-Competition Provision

Employment Agreement made on the , between

of

, referred to herein as Employee, and

, a corporation

organized and existing under the laws of the state of

with its principal office located at , referred to herein as Employer.

A. Whereas, Employer operates at day care center located at

, referred to hereinafter as Center; and

B. Whereas, Employee is qualified to direct and manage Center; and

C. Whereas, Employer has extended an offer of employment to Employee, and
Employee accepts such offer, on the terms and conditions set forth below;

Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:

1. Employment
Employer employs Employee, and Employee accepts employment with Employer,
on the terms and conditions set forth in this Agreement.

2. Term of Employment
This Agreement is effective on , and shall remain in effect until the end of Employer's fiscal year, subject to the
termination provisions of this Agreement. The parties agree to meet to discuss a new
employment contract no less than days before the end of Employer's
fiscal year. Unless otherwise extended, modified, or terminated, employment of
Employee under this Agreement shall be on a month-to-month basis after the original
term ends. This month-to-month contract is terminable by either party by giving written
notice to the other party days prior to the contemplated termination
date.

3. Duties
Employee is hereby engaged to be the Director of the Center which involves

Employer has the power to determine Employee's specific duties, and the manner in
which Employee carries out her duties. Employer has discretion in setting the days of the
week and hours in which Employee is to perform Employee's duties. However, Employer
shall not compel Employee to work more than a normal work week composed of
hours. Employee agrees to devote the time and attention necessary to perform
Employee's duties in a satisfactory manner.

4. Compensation
During the term of this Agreement, Employer shall pay Employee an annual
salary of $ for services performed on Employer's
behalf. Employee's salary shall be paid to Employee in installments of $ .

5. Fringe Benefits
In addition to the compensation employee receives pursuant to Section 4 of this
Agreement, Employee is eligible for participation in the fringe benefit programs
established by Employer on fulfillment of the eligibility requirements for each program.
Employer has established the following fringe benefit programs:

Employer may, without notice, modify or discontinue any fringe benefit program which it
maintains.

6. Expenses
Employer agrees to reimburse Employee for all expenses reasonably incurred in
performing duties pursuant to this Agreement. Such expenses include travel undertaken
on behalf of Employer, entertainment conducted for purposes of promotion of Employer's
business, and fees for educational programs relevant to Employee's current or future
positions with Employer.

7. Vacation
Employee is entitled to a paid vacation of weeks per year.

8. Work Facilities
Employer shall furnish Employee with an office at its principal place of business,
and shall provide Employee with all equipment, technical, and clerical support necessary
to the performance of Employee's duties pursuant to this Agreement.

9. Noncompetition
On termination of this Agreement, Employee agrees that Employee will not
engage in within a radius of

miles from , for a period of years.
Employee agrees that this noncompetition section is necessary to protect Employer's
business, and that Employee's violation of this section would result in irreparable harm to
Employer. If Employee breaches this section, Employer shall be entitled to injunctive
relief in addition to any other remedies legally available. This section shall survive
termination of this Agreement.

10. Termination of Employment
This Agreement and the employment relationship between Employer and
Employee shall terminate on the occurrence of any of the following events:

A. Employer's discharge of Employee for reasonable cause.

B. Employee's failure or refusal to adequately perform the duties of
employment with Employer.

C. Employee's failure or refusal to adhere to the terms of this Agreement, or
to reasonable policies and regulations established by Employer.

D. Employee acting in a manner which is detrimental to Employer's
reputation in the day care community.

E. The death of Employee during the term of this Agreement. Employer shall
pay to Employee's estate any unpaid compensation earned by Employee prior to
Employee's death.

11. No Waiver
The failure of either party to this Agreement to insist upon the performance of any
of the terms and conditions of this Agreement, or the waiver of any breach of any of the
terms and conditions of this Agreement, shall not be construed as subsequently waiving
any such terms and conditions, but the same shall continue and remain in full force and
effect as if no such forbearance or waiver had occurred.

12. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance with
the laws of the State of

13. Notices
Any notice provided for or concerning this Agreement shall be in writing and
shall be deemed sufficiently given when sent by certified or registered mail if sent to the
respective address of each party as set forth at the beginning of this Agreement.

14. Mandatory Arbitration
Any dispute under this Agreement shall be required to be resolved by binding
arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party

shall select one arbitrator and both arbitrators shall then select a third. The third
arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the
rules of the American Arbitration Association then in force and effect.

15. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and any
prior understanding or representation of any kind preceding the date of this Agreement
shall not be binding upon either party except to the extent incorporated in this
Agreement.

16. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by either
party in connection with this Agreement shall be binding only if placed in writing and
signed by each party or an authorized representative of each party.

17. Assignment of Rights
The rights of each party under this Agreement are personal to that party and may
not be assigned or transferred to any other person, firm, corporation, or other entity
without the prior, express, and written consent of the other party.

18. Counterparts
This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute but one and
the same instrument.

WITNESS our signatures as of the day and date first above stated.

(Name of Employer)

(Printed name)

By:

(Printed Name & Office in Corporation)

(Signature of Employee)

(Signature of Officer)

Enter text

What this Employment Agreement Covers

An Employment Agreement with Noncompetition and Confidentiality Provisions is a written contract that defines the employer-employee relationship, assigns responsibilities, protects trade secrets and confidential information, and limits post-employment competition. Typical clauses include term and duties, confidential information definition, noncompetition or non-solicitation covenants, consideration, scope and duration limits, remedies for breach, and dispute resolution. Employers use this document to preserve business goodwill, intellectual property, and client relationships; employees should review enforceability and state law limitations before signing.

Why this Agreement Matters for Employers and Employees

This agreement clarifies expectations, protects confidential data and customer relationships, and creates a contract-based basis for injunctive and monetary relief if vital business interests are threatened. It also sets employee obligations and makes post-employment restrictions explicit so both parties understand enforceability risks under state law.

Why this Agreement Matters for Employers and Employees

Who Typically Uses and Signs These Agreements

The agreement is used by employers and individual hires across industries whenever confidential information or client relationships need legal protection.

  • Employers and HR teams creating standardized offer packages and protecting trade secrets during hiring and promotions.
  • Senior-level hires, sales personnel, and technical staff who access proprietary systems, client lists, or product roadmaps.
  • Outside counsel and in-house counsel reviewing enforceability and drafting state-law-compliant restrictions.

Both parties should involve counsel for negotiable terms and check state-specific rules on enforceability before finalizing signatures.

Typical Signatory Roles

Employer Representative

General counsel, HR director, or authorized officer who signs on the employer's behalf and ensures the covenant aligns with business needs and state law; typically responsible for retention and enforcement policies.

Employee Signatory

The incoming or existing employee whose duties and post-employment restrictions are defined; should confirm that the legal name matches government ID and that consideration for restrictive covenants is stated.

Key Compliance and Security Elements

Encryption: TLS 1.2/1.3; AES-256 at rest
Audit Trail: Timestamped actions and signer attribution
HIPAA: BAA required for PHI workflows
ESIGN/UETA: Legal framework for e-signature validity
Access Controls: Role-based signer permissions
Retention: Tamper-evident storage with exportability

Legal Risks and Common Penalties

Unenforceable Covenant: May be void under state law
Injunction Exposure: Court orders to stop activity
Monetary Damages: Compensatory and possibly punitive
Litigation Costs: Significant attorney fees possible
Wage Withholding Claims: Improper restrictions may trigger claims
Tax Reporting Issues: Incorrect consideration reporting risks

Frequent Drafting and Execution Pitfalls

  • Overbroad geographic or time restrictions that exceed what courts consider reasonable and invite invalidation.
  • Vague confidentiality definitions that fail to specify what information is protected and for how long.
  • Missing consideration for a post-hire covenant — courts often require clear and separate consideration.
  • Failure to tailor clauses to state law; enforceability varies greatly by jurisdiction and job role.

Step-by-Step: Preparing and Completing the Agreement

Follow these sequential steps to draft, review, sign, and store a compliant employment agreement with confidentiality and noncompetition terms.

  • 01
    Draft Terms: Define duties, confidential information, covenant scope, and consideration.
  • 02
    Legal Review: Have counsel check enforceability and state-specific limits.
  • 03
    Signatures: Collect authorized employer and employee signatures, dates, and initials.
  • 04
    Recordkeeping: Store executed copies in secure, tamper-evident records systems.

How to Configure an Online Signing Workflow

Set up a clear digital workflow so documents route correctly and signatures are authenticated and preserved.

Field Configuration
Authentication Method Email link, SMS code, or stronger multi-factor
Template Use Save standardized clauses as reusable templates
Conditional Fields Show fields only when applicable to the signer
Signing Order Define sequential or parallel signatures for accountability

Where to Send or File the Executed Agreement

After signing, route executed copies to responsible teams and retain a secure master file for compliance and enforcement.

  • Human Resources: Store the signed agreement in the employee personnel file
  • Legal Department: Keep a redacted master for enforcement and precedent
  • Payroll/Finance: Record consideration for tax and benefit administration
  • Employee Copy: Provide a dated, fully executed copy to the employee

Digital Signing and File Format Considerations

Use platforms that preserve audit trails, support common file formats, and meet required authentication standards.

  • Accepted Formats: PDF, DOCX, and PDF/A for archival
  • Integrations: Connects with HRIS, CRM, and cloud storage
  • Authentication: Supports email, SMS, and stricter methods

Ensure the chosen solution meets your compliance needs (ESIGN/UETA, HIPAA if PHI involved) and preserves a full certificate of completion with timestamps and signer attribution.

Real-World Examples of Electronic Execution

These examples illustrate how organizations execute and manage employment agreements with confidentiality and noncompetition provisions.

Martin Properties — Tim Martin

A regional real estate firm moved offer letters and post-employment covenants online to speed closings.

  • Mobile and offline signing preserved deal momentum with field agents.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Fertility Centers — John Butler

A healthcare provider digitized staff confidentiality and noncompete acknowledgments during onboarding.

  • Centralized storage simplified audits and secure access.
  • "The airSlate SignNow team has been exceptional, responsive, the API has been great, and we're extremely happy that we chose airSlate SignNow as a company."

Practical Tips for Drafting and Executing These Agreements

Follow these best practices to reduce enforceability risk and operational friction when using noncompetition and confidentiality clauses.

Narrow and Specific Drafting
Limit covenants to protect legitimate business interests; tie geographic scope and duration to the employee's role and avoid blanket restrictions that courts often reject.
Clear Consideration Statement
State the consideration supporting the covenant (e.g., new hire bonus, promotion) and its timing to address jurisdictions that require new consideration for post-hire restrictions.
State Law Review
Review applicable state law for enforceability limits; use choice-of-law and forum clauses cautiously and confirm they will be honored by courts.
Maintain Secure Records
Preserve executed copies in tamper-evident storage, retain full audit trails, and keep access logs to support attribution and authenticity if challenged.

eSignature Vendor Pricing and Feature Snapshot

Compare basic pricing and feature points for common eSignature providers; signNow is listed first per standard comparison formatting.

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 plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes Yes
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

Frequently Asked Questions and Troubleshooting

Answers to common questions about enforceability, e-signing, state differences, and recordkeeping for employment agreements with restrictive covenants.


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