Real-World Examples of Non-Compete Agreement Examples Employers Actually Use

Examples of Non-Compete Agreement Examples by Industry

If you’re trying to make sense of non-competes, starting with real examples is far more useful than reading generic boilerplate. Below are several examples of non-compete agreement examples pulled from common fact patterns in 2024–2025. The details (names, locations) are fictional, but the structure and issues are modeled on real cases and typical employer templates.

Tech Startup Software Engineer: Narrow but Strategic

A mid-sized SaaS startup in Austin hires a senior backend engineer. The offer letter includes a non-compete clause that looks something like this:

“Employee agrees that for a period of 6 months following the end of employment, Employee will not, within the states of Texas or Colorado, directly compete with Employer by working in a substantially similar role (backend software engineering focused on subscription billing platforms) at any company deriving more than 25% of its revenue from subscription billing software for small businesses.”

Why this matters:

• Scope of work is specific. It focuses on subscription billing platforms, not “any technology company.” Courts tend to favor this kind of narrow drafting.
• Time limit is short. Six months is often seen as more reasonable than one or two years for mid-level tech employees.
• Geography is limited. Only two states, tied to where the company actually operates.

This is one of the better examples of non-compete agreement examples for tech because it shows how an employer can protect a niche product without blocking someone from the entire software industry.

Enterprise Sales Executive: Customer and Territory Focus

Now compare that to a non-compete for an enterprise sales executive at a national cybersecurity firm based in Chicago:

“For 12 months after separation from employment, Employee will not, within the United States, accept employment in a sales or business development capacity with any business that offers network security products or services that directly compete with Employer’s core products, where such employment would involve soliciting or servicing any customer or prospective customer to whom Employee sold or marketed Employer’s products in the 24 months preceding separation.”

Key takeaways:

• Customer-based limitation. The restriction is tied to customers the employee actually touched, which many courts see as more reasonable than a blanket industry ban.
• Nationwide territory. For a company with national operations, a nationwide scope can be upheld if it matches the real sales territory.
• One-year duration. A 12-month limit is very common in sales non-competes.

If you’re looking for examples of non-compete agreement examples that are more aggressive but still often enforceable, this kind of sales-focused clause is a good reference point.

Healthcare Professional: Non-Compete in a Medical Practice

Healthcare non-competes are under heavy scrutiny, especially for physicians and advanced practice providers. A typical clause for a cardiologist joining a private practice in Ohio might read:

“Upon termination of employment for any reason, Physician agrees that for a period of 18 months, Physician will not establish, join, or be employed by any cardiology practice within a 15-mile radius of Employer’s primary clinic located in Columbus, Ohio.”

Important points:

• Geographic radius is tied to the clinic. Courts often look at how far patients realistically travel. Fifteen miles in a metro area may be more acceptable than 50 miles.
• Duration is longer. In medicine, 12–24 months is common, though some states are moving to limit or ban these for certain providers.

Some states are restricting or banning non-competes for physicians and other healthcare workers, so anyone drafting these should check current state rules. The American Medical Association provides policy background and resources on physician employment contracts at ama-assn.org.

Franchise Owner: Protecting the Brand and Territory

Franchise agreements almost always include non-compete language. Consider a fast-casual restaurant franchise in Florida:

“Franchisee agrees that during the term of this Agreement and for 2 years after its termination or expiration, Franchisee shall not own, operate, or have any financial interest in any quick-service restaurant that derives more than 30% of its revenue from build-your-own burrito or taco products within a 10-mile radius of any restaurant operating under the Franchisor’s brand.”

Why this is one of the best examples of non-compete agreement examples in franchising:

• Product type is defined. It targets a specific competitive concept, not every restaurant.
• Territory mirrors the franchise area. The radius is tied to existing branded locations.
• Longer duration is common. Courts often treat franchise non-competes differently from employee non-competes, sometimes allowing longer terms.

Senior Executive: Broad but Negotiated

Senior executives typically see broader restrictions, but they also negotiate harder. Imagine a CFO of a publicly traded retail chain headquartered in New York:

“Executive agrees that for 18 months after the termination of employment, Executive will not serve as an officer, director, or consultant in a substantially similar capacity for any company that derives more than 40% of its revenue from discount retail operations in the United States with annual revenues exceeding $500 million.”

What stands out:

• Revenue thresholds. Tying the restriction to companies above a certain revenue level narrows the scope and makes it more defensible.
• Role-specific. It targets leadership roles, not any employment whatsoever.
• Industry definition. “Discount retail operations” is still broad, but the revenue filter and role limitation help.

For executives, these examples of non-compete agreement examples show a pattern: broader restrictions, but also more precise definitions and substantial consideration (equity, severance, or special bonuses) in exchange.

Startups and Equity Grants: Non-Compete Tied to Vesting

A seed-stage startup in California (where most employee non-competes are void under state law) tries a different approach. Instead of a traditional non-compete, the company uses a forfeiture-for-competition clause tied to equity:

“If, within 12 months after termination of employment, Employee accepts employment with or provides services to a business that competes directly with Company’s primary product offering as of the date of termination, any unvested equity awards shall be immediately forfeited and canceled.”

In California this would still face serious enforceability issues, but in other states this kind of structure is becoming more common. It’s not a classic non-compete that outright bans work, but it changes the financial consequences of competing. When people ask for modern examples of non-compete agreement examples, this equity-based model is increasingly part of the conversation.

Remote Work and Multi-State Employees in 2024–2025

Remote work has made non-competes more complicated. Picture a data scientist living in North Carolina, employed by a company headquartered in Massachusetts, with clients across the U.S. Her agreement says:

“Employee agrees that for 9 months following termination of employment, Employee will not perform substantially similar data science services for a direct competitor of Employer’s primary analytics platform in any state in which Employer has customers as of the date of termination.”

Problems and trends:

• Vague geography. “Any state in which Employer has customers” can be interpreted as nationwide, which some courts view skeptically.
• Remote reality. Courts are starting to ask where the employee actually works, not just where the company is based.

In 2024–2025, regulators and courts are increasingly suspicious of broad, nationwide non-competes for remote workers whose actual markets and roles are much narrower.

How Laws Are Changing Non-Compete Examples in 2024–2025

If you’re looking at older templates, be careful. The legal landscape around non-competes has shifted significantly:

• FTC proposed rule. In 2023–2024, the U.S. Federal Trade Commission signaled a move toward sharply limiting or banning most employment non-competes. Litigation and political shifts mean the final outcome is still in flux, but the direction of travel is clear: more scrutiny, not less. You can track updates at ftc.gov.
• State bans for certain workers. Several states (including California, Oklahoma, North Dakota, and the District of Columbia, among others) restrict or void most employee non-competes. Many others limit non-competes for low-wage workers.
• Income thresholds. States like Washington and Illinois tie enforceability to salary levels; if the worker earns below a set income threshold, the non-compete is void.

These trends are reshaping what the best examples of non-compete agreement examples look like. Modern clauses are:

• Shorter in duration (often 6–12 months)
• Narrower in geography or focused on customers instead of entire regions
• More tightly connected to specific roles, products, or confidential information

Breaking Down a Solid Example of a Non-Compete Clause

To make all of this more concrete, consider a mid-level marketing manager at a regional e‑commerce brand based in Georgia. A modern, relatively balanced clause could read:

“For a period of 9 months after the end of Employee’s employment for any reason, Employee will not, within the states of Georgia, Florida, and Alabama, accept employment in a marketing leadership role (manager level or above) with any online retail business that derives more than 50% of its revenue from home goods and decor and that uses a customer database substantially similar to Employer’s proprietary customer list that Employee had access to during employment.”

Why this works better than older boilerplate:

• Clear time period. Nine months is moderate and specific.
• Defined region. The states match the company’s actual core markets.
• Industry + role limitation. It doesn’t bar the employee from all marketing work, only certain roles in a defined segment.
• Tie to confidential information. It links the restriction to the employee’s access to proprietary customer data.

This is the kind of language you see in the best examples of non-compete agreement examples drafted with current enforcement trends in mind.

Red Flags When Reviewing Real Examples of Non-Compete Agreement Examples

When you look at real examples, certain patterns should make you pause:

• Overbroad industry definitions. Phrases like “any business that competes in any way with Employer” are often too vague.
• Nationwide or global scope with no justification. If the company only operates in three states, a worldwide ban is hard to defend.
• Very long durations. Anything beyond 18–24 months for ordinary employees is often suspect; even that can be too long in some states.
• Low-wage workers. Many states and federal regulators are targeting non-competes for low-income or hourly workers as unfair.

The U.S. Department of Labor and various state attorney general offices have published guidance criticizing overbroad non-competes, especially for low-wage employees. For general background on worker protections and contract fairness, the U.S. Department of Labor’s site at dol.gov is a useful starting point.

Practical Tips for Using These Examples

These examples of non-compete agreement examples are not templates to copy word-for-word; they’re models to help you think about structure and risk.

For employers:

• Tie the restriction to actual business interests: trade secrets, confidential information, and real customer relationships.
• Use shorter time frames unless you have a strong, fact-based reason to go longer.
• Consider whether a non-solicitation or confidentiality agreement alone might be enough.

For employees:

• Ask for specific definitions of competitors, territories, and roles.
• Push to limit the non-compete to customers you actually served or products you actually worked on.
• If you’re in a state that limits non-competes, talk to a qualified attorney before signing.

For both sides, looking at multiple real examples of non-compete agreement examples can clarify what’s normal in your industry and where there’s room to negotiate.

FAQ: Examples of Non-Compete Agreement Examples and Common Questions

Q: Can you give a simple example of a reasonable non-compete?
A: A fairly typical example of a reasonable non-compete might be: a sales manager at a regional software company agrees not to work for a direct competitor in a sales role within the same three‑state territory for 12 months, limited to customers they actually serviced. It’s time-limited, geography-limited, role-limited, and focused on real competitive risk.

Q: What are some examples of non-compete agreements that courts often reject?
A: Courts often reject agreements that bar an employee from working in an entire industry anywhere in the country for two or more years, especially when the employee is not senior leadership and did not have access to high-level trade secrets. Another weak example of a non-compete would be one that applies to a low-wage worker at a local store but claims to cover any competing business nationwide.

Q: Do I always need a lawyer to draft or review a non-compete?
A: You don’t have to, but it’s wise. Non-compete enforceability is highly state-specific and changes frequently. A clause that looks fine based on online examples of non-compete agreement examples might be void in your state. A local employment attorney can quickly flag issues and suggest narrower, safer language.

Q: Are non-competes enforceable for independent contractors?
A: Sometimes. Many of the same principles apply, but courts also look closely at whether the person is really an independent contractor or an employee in disguise. Overly restrictive non-competes can be a factor in misclassification disputes. Reviewing contractor non-competes against current state law and IRS guidance is important.

Q: Where can I find more guidance beyond these examples?
A: For policy and legal background, check:

• The Federal Trade Commission’s competition policy resources at ftc.gov
• State labor department or attorney general websites (often .gov domains)
• Academic and policy analysis from universities such as Harvard Law School’s Program on Negotiation at pon.harvard.edu

Use these sources to complement the real-world examples of non-compete agreement examples in this article and to make sure what you’re drafting or signing lines up with current law where you actually work.