Practical examples of non-compete clause examples for contractors

Real-world examples of non-compete clause examples for contractors

Let’s skip the theory and start with what people actually put in contracts. Below are real-world style examples of non-compete clause examples for contractors, adapted from what lawyers and businesses are using right now. These are not one-size-fits-all templates, but they give you language you can react to, negotiate, and refine with counsel.

Example of a non-compete clause for a marketing contractor

Here’s a plain-language example of non-compete clause wording you might see in a digital marketing or social media contract:

Non-Competition. During the term of this Agreement and for six (6) months following its termination, Contractor shall not directly provide paid digital marketing, paid social media management, or search engine optimization services to any business that competes with Client in the online meal-kit delivery industry within the United States. This restriction applies only to businesses with annual revenue exceeding $2 million that sell subscription-based meal kits to consumers.

Why this works reasonably well as one of the best examples of non-compete clause examples for contractors:

• The services are clearly defined (digital marketing, social media, SEO), not “any services.”
• The industry is narrow (online meal-kit delivery), not “food” or “e‑commerce” in general.
• The geographic scope is clear (United States).
• The time period is limited (six months, not five years).
• The competitor definition is specific (revenue threshold and business model).

This kind of language gives a contractor room to keep working in marketing while still protecting the client’s direct niche.

Example of a non-compete clause for a software development contractor

Tech non-competes are under heavy scrutiny in the U.S., especially for workers who look a lot like employees. Still, some companies use tightly tailored language like this:

Non-Competition. During the term of this Agreement and for three (3) months thereafter, Contractor shall not develop, for any third party, software products that perform substantially similar core functionality to Client’s [Product Name], namely: (a) real-time driver dispatch optimization for last-mile delivery fleets; and (b) automated route planning using proprietary algorithms derived from Client’s confidential data. This restriction is limited to work performed for direct competitors operating last-mile delivery fleets of more than 100 vehicles in North America.

This is one of the more realistic examples of non-compete clause examples for contractors in tech because it:

• Focuses on core functionality, not “any logistics software.”
• Ties the restriction to use of confidential data and algorithms.
• Limits the customer size and region (fleets over 100 vehicles in North America).
• Uses a short time period (three months) that is easier to justify.

Contractors should watch for vague phrases like “any competing product” without definitions. Companies should avoid blanket bans on working in “technology” or “software” altogether.

Example of a non-compete clause for a healthcare consultant contractor

Healthcare is heavily regulated, and non-competes can intersect with patient access and public policy. A more careful example of non-compete clause language might look like this:

Non-Competition. For a period of nine (9) months following termination of this Agreement, Contractor shall not provide revenue cycle management consulting services to any acute-care hospital located within a 50-mile radius of Client’s primary facility, where such services are substantially similar to the services provided to Client under this Agreement.

Why this fits among the better examples of non-compete clause examples for contractors in healthcare:

• It’s tied to a specific service category (revenue cycle management consulting).
• It uses a clear radius (50 miles) instead of “anywhere the Client operates.”
• It limits the restriction to acute-care hospitals, not clinics, payers, or telehealth startups.

Given ongoing debates about non-competes and health access, hospitals and healthcare consultants should track legal updates from sources like the U.S. Federal Trade Commission (FTC) and professional bodies.

Example of a non-compete clause for a design or creative contractor

Creative professionals often work across many industries, so overbroad non-competes can be especially damaging. Here’s a more balanced example of non-compete clause language for a freelance designer:

Non-Competition. During the term of this Agreement and for four (4) months thereafter, Contractor shall not provide brand identity design services (including logo design, visual identity systems, and brand style guides) to any direct competitor of Client in the direct-to-consumer skincare market that sells primarily through online subscription models in the United States and Canada.

This example keeps the restriction narrow by:

• Targeting brand identity work, not “any design work.”
• Limiting the industry (direct-to-consumer skincare via subscription).
• Specifying sales channels (primarily online subscription).
• Defining geography (U.S. and Canada).

For designers, one of the best examples of non-compete clause examples for contractors is any clause that lets them continue working in their craft and only restricts a specific combination of client type, channel, and product.

Example of a non-compete clause for an IT security contractor

Security and cybersecurity work often involves deep access to sensitive systems. Here’s a realistic example of non-compete clause wording for a cybersecurity contractor:

Non-Competition. For six (6) months following the end of this Agreement, Contractor shall not provide penetration testing, red-team engagements, or security architecture review services to any financial institution that (a) is regulated as a bank or credit union in the United States, and (b) has more than $10 billion in assets under management, where such services relate to the same core systems evaluated for Client.

This example of non-compete clause language does a few smart things:

• It narrows the services to specific security activities.
• It narrows the client type (regulated banks/credit unions over a certain size).
• It connects the restriction to the same core systems, not all security work.

Security contractors should be especially careful with non-competes layered on top of non-solicitation and confidentiality clauses, since the combination can effectively freeze them out of their own niche if drafted poorly.

Example of a non-compete clause for a fractional executive contractor

Fractional CMOs, CFOs, and COOs are everywhere now. Their contracts often include targeted non-competes because they see sensitive strategy. Here’s one of the more realistic examples of non-compete clause examples for contractors at the executive level:

Non-Competition. During the term of this Agreement and for twelve (12) months thereafter, Contractor shall not serve as a chief marketing officer, fractional chief marketing officer, or equivalent senior marketing advisor for any software-as-a-service (SaaS) company that (a) offers project management tools primarily to U.S.-based construction firms, and (b) generates annual recurring revenue of at least $5 million.

This language is more likely to hold up because:

• It restricts only similar senior roles, not all marketing work.
• It targets a very specific type of SaaS company.
• It uses a revenue threshold to focus on meaningful competitors.

For fractional executives, this is one of the best examples of non-compete clause examples for contractors because it protects the client’s competitive space without blocking the contractor from all SaaS or all marketing roles.

Key elements that make these non-compete examples enforceable

If you scan the examples of non-compete clause examples for contractors above, you’ll see the same pattern over and over. Courts in the U.S. and many other countries tend to look at three main questions:

• Is the time limit reasonable? Months are better than years. A 6–12 month limit is often more defensible than a 3–5 year ban.
• Is the geography reasonable? A 25–50 mile radius, or a specific country/region where the client actually does business, looks better than “worldwide.”
• Is the scope of work reasonable? Tying the restriction to the contractor’s actual work and the client’s real competitors is far safer than banning all work in an entire industry.

Legal standards vary by state and country. For example, several U.S. states either ban or heavily restrict non-competes for many workers, and the U.S. Federal Trade Commission has proposed broad limits on non-compete agreements for workers in general. You can monitor regulatory updates directly from the FTC at ftc.gov.

Contractors and clients should also understand that confidentiality and non-solicitation clauses often give plenty of protection without needing an aggressive non-compete. The more overreaching the non-compete, the more likely it is to be challenged or ignored.

2024–2025 trends affecting non-compete clauses for contractors

The legal and policy climate around non-competes has shifted noticeably over the last few years. When you look at modern examples of non-compete clause examples for contractors, you’ll see several trends:

Increased regulatory scrutiny in the U.S.

The FTC and several state legislatures have signaled that they see non-competes as a barrier to worker mobility and wage growth. In recent years:

• States like California, Oklahoma, and North Dakota have long banned most employee non-competes, and courts often treat contractor non-competes skeptically as well.
• Other states have passed laws limiting non-competes for workers under certain income thresholds.
• The FTC has proposed rules that, if fully implemented, would sharply restrict non-competes for many workers, including some contractors.

While this is still a moving target, the trend is clear: broad, aggressive non-competes are increasingly risky.

For up-to-date legal analysis, law school and bar association resources, such as those hosted by Harvard Law School, are helpful starting points, along with state government labor or attorney general websites.

Shift toward non-solicitation and confidentiality

Because non-competes are under the microscope, many companies now lean more heavily on:

• Non-solicitation clauses (no poaching clients, customers, or employees for a set period).
• Confidentiality / NDA clauses (no use or disclosure of trade secrets and confidential information).

Modern examples of non-compete clause examples for contractors often appear alongside these narrower protections, or they are replaced entirely by them in more restrictive jurisdictions.

Industry-specific sensitivity

Some sectors are especially sensitive to non-compete restrictions:

• Healthcare: There is growing concern that non-competes for clinicians and associated professionals may reduce access to care or raise costs. Research and policy discussions from organizations like the National Institutes of Health and public health scholars have highlighted the impact of workforce mobility on care delivery.
• Tech: Rapid innovation and short product cycles make multi-year non-competes look outdated and anti-competitive.
• Gig and platform work: Many regulators view independent contractors in this space as vulnerable to overreaching restrictions.

The bottom line: if your examples of non-compete clause examples for contractors look like they were written in 2005, they probably need to be tightened and modernized.

How to adapt these examples to your contractor agreements

Using these examples of non-compete clause examples for contractors as inspiration is fine, but copying them blindly is not. Here’s how to adapt them intelligently.

For hiring companies

Start by defining what you are really trying to protect. Is it:

• A specific algorithm, product, or trade secret?
• A narrow customer segment or territory?
• A confidential go-to-market strategy or pricing model?

Then, adjust the clause to match that reality:

• Narrow the services. Name the exact type of work you want to restrict. If your contractor did conversion rate optimization for your SaaS onboarding funnel, don’t ban them from all marketing.
• Narrow the competitors. Define competitors by industry, revenue, customer type, or geography. “Any company in software” is lazy drafting.
• Limit the time. Ask yourself how long your information will actually be sensitive. For many fast-moving businesses, 3–12 months is more realistic than multiple years.

Use your legal counsel to pressure-test your draft against current state and federal rules. Many in-house and outside counsel now advise treating contractor non-competes as a last resort rather than a default.

For contractors

If you receive a contract with a non-compete, treat the clause as negotiable, not sacred text. When you see examples of non-compete clause examples for contractors that feel too broad, you can push back by:

• Asking the client to tie the restriction to specific services you will actually perform.
• Proposing a shorter time period and a smaller geographic scope.
• Requesting a clear definition of competitors and excluding categories you care about.
• Suggesting that a non-solicitation + NDA combo replace or significantly narrow the non-compete.

You can also ask for compensation that reflects the restriction. If a non-compete will materially limit your ability to earn a living in your specialty, it’s reasonable to expect higher rates or a buyout.

Independent contractors should review guidance from neutral sources, such as university small business clinics or legal aid organizations, which often publish plain-language explanations of contract terms. Many law schools and bar associations provide free or low-cost resources through their .edu or .org websites.

FAQs about non-compete clause examples for contractors

What are some common examples of non-compete clause examples for contractors?

Common examples include clauses that:

• Ban a marketing contractor from working with direct competitors in the same niche for 6–12 months.
• Restrict a software developer from building substantially similar products for a defined set of rivals.
• Prevent a healthcare consultant from providing the same consulting services to hospitals within a set radius.
• Limit a fractional executive from holding equivalent senior roles at companies serving the same customer segment.

All of these examples of non-compete clause examples for contractors work best when they are narrow, time-limited, and tied closely to the work actually performed.

Can a contractor refuse to sign a non-compete?

Yes. A contractor can negotiate or refuse a non-compete, though the client may respond by walking away or adjusting other terms. In practice, many clients are open to:

• Shortening the time period.
• Narrowing the definition of competitors.
• Replacing the non-compete with non-solicitation and confidentiality clauses.

If a client refuses any adjustment to an overbroad clause, that’s a signal to consider the risk carefully.

Are non-compete clauses for contractors always enforceable?

No. Enforceability depends on:

• The jurisdiction (state or country law).
• How reasonable the time, geography, and scope are.
• Whether the contractor is truly independent or looks more like an employee.

Some U.S. states heavily restrict non-competes, and proposed federal rules may limit them further. Courts often strike down or narrow clauses that are far broader than necessary.

What is an example of a fair non-compete clause for a contractor?

A fair example of a non-compete clause for a contractor might say:

For six (6) months after this Agreement ends, Contractor will not provide [specific service] to any [defined competitor type] in [defined region] where such services are materially similar to those provided to Client.

This kind of structure mirrors the better examples of non-compete clause examples for contractors in this guide: clear service, clear competitor definition, clear region, and a modest time frame.

Where can I learn more about legal limits on non-competes?

For U.S. readers, start with:

• The Federal Trade Commission overview of non-compete policy: https://www.ftc.gov/
• Law school and public policy resources, such as those hosted by Harvard Law School
• Research and workforce mobility discussions from organizations like the National Institutes of Health, which often touch on health workforce dynamics and related policy debates.

Because the rules are changing, especially in 2024–2025, always confirm current law with a qualified attorney in your jurisdiction.

Non-compete clauses for contractors are no longer boilerplate throw-ins that everyone ignores. Regulators are watching them, courts are questioning them, and savvy contractors are pushing back. Using targeted, realistic examples of non-compete clause examples for contractors—like the ones in this guide—will help you protect your business without overreaching, and help contractors protect their careers without burning bridges.