Non-Compete Agreement Template - Alliance for Contractors
Professional Construction Industry Solutions

Non-Compete Agreement

IMPORTANT: This template requires legal review and state-specific customization before use. Non-compete enforceability varies significantly by jurisdiction.

Agreement Date: [DATE]

State of Execution: [STATE]

1. PARTIES TO AGREEMENT

Company/Contractor: [COMPANY NAME], a [STATE] [ENTITY TYPE] ("Company"), with principal place of business at [COMPANY ADDRESS].

Employee/Subcontractor: [INDIVIDUAL NAME] ("Employee"), residing at [EMPLOYEE ADDRESS].

Alliance Integration Note: Classification as employee vs. independent contractor affects enforceability. Ensure proper worker classification before implementing non-compete restrictions.

2. DEFINITIONS

"Competitive Business" means any business that provides construction, contracting, or related services including but not limited to: [SPECIFIC SERVICES: e.g., residential construction, commercial contracting, electrical work, plumbing, HVAC, etc.] within the Restricted Territory.

"Confidential Information" means all non-public information including customer lists, pricing strategies, trade secrets, business methods, supplier relationships, project specifications, bidding strategies, and proprietary construction techniques.

"Restricted Territory" means [GEOGRAPHIC AREA: e.g., within 25 miles of Company's principal office, the counties of X, Y, and Z, etc.].

"Restricted Period" means [TIME PERIOD: e.g., 12 months, 18 months, 24 months] following termination of employment or engagement.

3. NON-COMPETE RESTRICTIONS

During the term of employment/engagement and for the Restricted Period thereafter, Employee agrees not to, directly or indirectly:

  1. Engage in, own, manage, operate, control, or participate in any Competitive Business within the Restricted Territory;
  2. Provide services as an employee, consultant, contractor, or advisor to any Competitive Business within the Restricted Territory;
  3. Hold any financial interest in any Competitive Business within the Restricted Territory, except passive investments of less than 2% in publicly traded companies.

State-Specific Enforceability Considerations:

  • California, North Dakota, Oklahoma: Generally prohibit non-compete agreements
  • Texas, Florida, Georgia: Enforce reasonable non-competes with specific statutory requirements
  • Illinois, Washington, Nevada: Restrict non-competes based on salary thresholds
  • Note: Laws change frequently - verify current state requirements before implementation

4. NON-SOLICITATION PROVISIONS

Customer Non-Solicitation

For the Restricted Period, Employee shall not directly or indirectly solicit, contact, or attempt to divert business from any client or customer of the Company with whom Employee had contact or knowledge during the [TIME PERIOD: e.g., 24 months] preceding termination.

Employee Non-Solicitation

For the Restricted Period, Employee shall not directly or indirectly recruit, solicit, or induce any employee, contractor, or subcontractor of the Company to terminate their relationship with the Company or to work for any Competitive Business.

5. CONFIDENTIALITY OBLIGATIONS

Employee acknowledges receipt of Confidential Information and agrees to:

  1. Maintain strict confidentiality of all Confidential Information;
  2. Not disclose Confidential Information to any third party;
  3. Not use Confidential Information for personal benefit or competitive purposes;
  4. Return all Confidential Information upon termination of employment/engagement.

6. CONSIDERATION AND COMPENSATION

In exchange for these restrictions, Company provides the following consideration:

  • Employment/engagement opportunity: [POSITION/ROLE]
  • Compensation: [SALARY/PAYMENT TERMS]
  • Access to proprietary information, training, and business opportunities
  • Additional Consideration: [e.g., signing bonus, severance pay, continued benefits]
Alliance Integration Note: Adequate consideration is crucial for enforceability. For existing employees, additional consideration beyond continued employment may be required.

7. ENFORCEMENT AND REMEDIES

The parties acknowledge that breach of this Agreement would cause irreparable harm to the Company, and therefore:

  1. Company is entitled to injunctive relief without posting bond;
  2. Employee shall pay Company's reasonable attorney fees and costs for enforcement;
  3. Monetary damages may be awarded in addition to equitable relief;
  4. The Restricted Period shall be extended by the duration of any breach.

8. REASONABLENESS AND SEVERABILITY

The parties agree that the restrictions contained herein are reasonable in scope, duration, and geographic area. If any provision is deemed unenforceable, the court is authorized to modify such provision to make it enforceable while preserving the intent of the parties.

9. GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by the laws of [STATE]. Any disputes shall be resolved in the courts of [COUNTY, STATE].

10. ADDITIONAL PROVISIONS

Survival: The obligations under this Agreement shall survive termination of employment or engagement.

Entire Agreement: This Agreement constitutes the entire agreement regarding non-compete restrictions and supersedes all prior agreements.

Amendment: This Agreement may only be amended in writing signed by both parties.

State-Specific Customization Required: This template must be customized for your specific state's requirements. Consider consulting with employment law counsel familiar with local non-compete restrictions, particularly for contractors and construction industry workers.

SIGNATURES

COMPANY:

Signature

Name: [PRINT NAME]

Title: [TITLE]

Date: [DATE]

EMPLOYEE/CONTRACTOR:

Signature

Name: [PRINT NAME]

Date: [DATE]