Parties & Recitals
Identify employer and employee as legal entities, state employment start date, and include recitals explaining business interests protected by covenants.
Combining employment terms with a non-compete clarifies expectations, reduces future disputes over trade secrets or client relationships, and documents consideration for restrictive covenants. A well-drafted agreement protects legitimate business interests while improving enforceability by aligning scope, duration, and geographic limits with state law and clear compensation terms.
Employees and employers should each review restrictive covenants carefully and consider state law differences before executing or enforcing the agreement.
HR managers are responsible for issuing the agreement, ensuring consistent use across hires, maintaining the executed version in the personnel file, and coordinating legal review for role-specific restrictions and compliance.
Small business owners negotiate covenant scope and consideration, decide on garden-leave or severance terms, and weigh enforceability risks against commercial needs when including non-competition clauses.
Identify employer and employee as legal entities, state employment start date, and include recitals explaining business interests protected by covenants.
Describe job title, essential functions, reporting structure, and performance expectations to connect restrictions to the employee’s responsibilities.
Specify salary, bonus eligibility, equity grants, or specific additional consideration provided for the non-compete to support enforceability.
Define confidential information clearly, exempt public information, and describe permitted disclosures and handling requirements.
State geographic area, duration, prohibited activities, and scope narrowly to protect legitimate business interests while remaining reasonable.
Include injunctive relief, liquidated damages if appropriate, choice of law, venue, and severability to preserve enforceable provisions.
| Field Name and Recommended Configuration Settings | Setting | Recommended value |
|---|---|
| Signature Field | Required | Signer must complete |
| Date Field | Auto-fill | MM/DD/YYYY format |
| Authentication Method | Email + SMS | Two-factor recommended |
| Audit Trail | Enabled | IP, timestamp, action log |
Choose a platform that provides tamper-evident signed PDFs, a complete audit trail, and integration with HR and document storage to centralize executed agreements.
Request return within 7–14 days of issuance to lock terms.
Clarify if obligations begin on hire or a separate effective date.
Provide any statutorily required written notice per state law.
Complete I-9 by hire date (8 CFR §274a.2).
Track period of restricted activity and notice triggers.
| 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 | Limited free trial | Limited free trial |
| 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 |