Parties Identified
Full legal names and entity types for employer and employee, plus addresses and role/title to clearly tie restrictions to the relationship and avoid ambiguity.
A clear covenant agreement protects business goodwill, confidential information, and customer relationships while documenting mutual obligations. It provides predictable remedies and helps deter misuse of proprietary assets without the uncertainty of oral understandings.
Employers, HR teams, in-house counsel, and hiring managers commonly prepare and issue Employment Covenant Agreements when hiring or changing key roles.
Both parties should review terms carefully; employers should document consideration and reasonableness, and employees should consider state enforceability and seek independent counsel where appropriate.
Full legal names and entity types for employer and employee, plus addresses and role/title to clearly tie restrictions to the relationship and avoid ambiguity.
Specify trade secrets, confidential information, client relationships, and goodwill being protected; avoid overly broad language that could render the covenant unenforceable.
Describe prohibited activities (competition, solicitation, recruiting) with measurable boundaries: duration, territory, and specific prohibited clients or products when possible.
State the consideration (hire, continued employment, bonus, equity). For post-employment covenants, new consideration should be recorded to support enforceability.
Include injunctive relief, recovery of damages, and fee-shifting if agreed; clarify interim relief and enforcement forum.
Designate the state law governing interpretation and venue; ensure the choice is reasonable relative to the employer's operations and statutory limitations.
| Field | Configuration |
|---|---|
| Signer Order | Specify sequence (employer then employee or parallel) to ensure correct execution flow. |
| Authentication | Choose email with SMS code or stronger methods for high-risk agreements. |
| Required Fields | Make name, date, and signature mandatory to avoid incomplete records. |
| Audit Trail | Enable full event logging (IP, timestamps, actions) for evidentiary support. |
Select a platform that provides reliable audit trails, industry-standard encryption, and configurable authentication options for employment covenants.
Ensure the chosen solution supports ESIGN/UETA compliance, offers retention and export formats, and allows you to attach supporting exhibits securely.
Record MM/DD/YYYY when agreement is signed
When obligations begin; may differ from execution
Date consideration was provided or promised
End date of restrictions
When to review for archival or destruction
Finalize terms and internal approvals before presenting to the employee.
All parties sign and dates are recorded; verify witness or notary if required.
HR records terms, applies role restrictions, and records consideration delivery.
Track compliance and customer interactions for the duration of the covenant.
| 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 | No | No | No | No |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
A mid-size tech firm required narrow non-competes for senior engineers to protect product roadmaps
A healthcare provider used non-solicit clauses to protect patient lists and referral relationships