Non-Compete Clause
Specify prohibited business activities in clear terms, limited to what is necessary to protect trade secrets, goodwill, or client relationships, and avoid blanket language that covers unrelated markets or roles.
Non-Competition Agreements protect legitimate business interests such as trade secrets, customer relationships, and workforce investment while defining remedies and expectations. They clarify post-employment boundaries, reduce the likelihood of solicitation or direct competition, and support valuation during M&A or financing events when properly drafted and backed by adequate consideration.
Common participants include employers, departing owners, contractors, and purchasers who need to protect business value and confidential information.
Parties should consult counsel to tailor scope, duration, and consideration to the jurisdiction and industry risk profile.
An HR Manager typically coordinates execution across new hires, ensures consideration is documented in offer letters, and manages storage and access controls for signed agreements.
A Founder or CEO signs on behalf of a company, approves restrictive scope for key employees or sale transactions, and may negotiate consideration and enforcement language with counsel.
Specify prohibited business activities in clear terms, limited to what is necessary to protect trade secrets, goodwill, or client relationships, and avoid blanket language that covers unrelated markets or roles.
Preventing solicitation of customers or employees is often narrower and more likely to be enforced; draft lists of covered contacts or categories where feasible.
Define confidential information precisely, set permitted uses, and include obligations for return or destruction on termination to protect trade secrets and sensitive data.
State the specific consideration supporting the restraint, such as initial employment, a promotion, severance, or purchase price allocation, and document timing of delivery.
Include a severability clause to permit courts to narrow invalid provisions rather than void the entire agreement, improving enforceability in many jurisdictions.
Identify the governing state law and dispute resolution method, and specify remedies such as injunctive relief and damages while being mindful of state-specific limits on enforceability.
| Field | Configuration |
|---|---|
| Signature Field | Required; signer must click or draw signature |
| Date Field | Auto-fill MM/DD/YYYY when signer submits |
| Initials Field | Place at key clause changes or page bottoms |
| Authentication Level | Email + optional SMS code or SSO |
Choose a platform that supports common file formats, audit trails, and your existing business systems to minimize friction and preserve execution evidence.
Ensure the chosen setup captures signer attribution, timestamps, and an immutable audit trail while matching your security and regulatory requirements.
Date when restrictive obligations commence
Maximum duration of the restraint
Notice required for termination or material change
Periodic clause review or renewal deadline
Time limits for initiating claims or arbitration
Legal and HR sign-off on final covenant language
Collect signed copies and capture authentication data
Store executed agreement in a secure repository
Track compliance and enforceability during the restraint term
| Criteria | Non-Competition | Non-Solicitation |
|---|---|---|
| Scope | broader business activity | specific customers or employees |
| Typical Duration | 6–24 months common | 6–24 months common |
| Enforceability Focus | market exclusion justification | protecting relationships |
| Common Remedy | injunctions and damages | injunctions and damages |
| 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 |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
| Envelope Cap | No envelope cap | 100 envelopes/user/year | Varies by plan | Varies by plan | Varies by plan |
Optica used digital workflows for various contractual documents to improve turnaround.
A small real estate firm standardized agreement execution across agents and vendors.