Practical examples of non-compete agreement examples for sales representatives

Real-world examples of non-compete agreement examples for sales representatives

Let’s start where most people actually need help: seeing what these clauses look like in the wild. Below are realistic examples of non-compete agreement language used with sales representatives, along with commentary on why each might stand up in court or fall apart.

These are illustrative samples, not one-size-fits-all templates. Enforceability depends heavily on state law, industry, and the salesperson’s role.

Example of a territory-based non-compete for a local sales rep

A classic structure for a field sales rep who works a defined geographic region is a territory-based restriction. Here’s a simplified example of non-compete agreement language:

Sample clause – Local territory non-compete
“For a period of 12 months following the end of Employee’s employment for any reason, Employee shall not, within a 50-mile radius of any county in which Employee had sales responsibility during the 12 months prior to termination, directly or indirectly sell, solicit, or market competing products or services to any customer or prospective customer of Employer.”

Why this is often enforceable in many U.S. states:

• The time period (12 months) is relatively modest.
• The territory (50 miles around an actual sales territory) is tied to where the rep actually worked.
• The restriction is limited to competing products or services, not the entire industry.

This is one of the best examples of a non-compete that balances an employer’s interest in protecting its customer base with a salesperson’s need to keep working.

Product-line examples of non-compete agreement examples for sales representatives

Sometimes the risk is not geography, but a very specific product line or niche. In tech, pharma, or medical device sales, companies often narrow the restriction to direct competitors.

Sample clause – Product-line non-compete
“For 18 months after termination of employment, Employee shall not engage in sales, marketing, or business development activities for any business that sells enterprise cybersecurity platforms primarily designed for financial institutions, where such products compete with Employer’s flagship platform as it existed during the last 12 months of Employee’s employment.”

Key points:

• The clause is limited to enterprise cybersecurity platforms for financial institutions, not all software.
• It focuses on products that compete with the employer’s flagship platform, reducing overbreadth.
• The time period (18 months) is on the long side but may be defended in industries with long sales cycles.

When lawyers talk about the best examples of enforceable non-compete clauses, they often highlight this kind of narrow product-line focus rather than vague bans on working “in any capacity” for a competitor.

Customer-specific non-compete and non-solicitation hybrid

For many sales organizations, the real concern is losing key accounts, not blocking a rep from the entire market. That’s where customer-specific restrictions come in.

Sample clause – Key account restriction
“For 24 months following the termination of employment, Employee shall not, on behalf of any competing business, solicit, sell to, or accept business from any customer or named prospect to whom Employee sold, marketed, or actively pitched Employer’s products or services in the 24 months prior to termination.”

This is technically closer to a non-solicitation clause, but many agreements bundle it under the heading “Non-Competition.” Courts often view these as more reasonable because:

• The restriction is limited to customers and prospects the rep actually touched.
• The rep can still work for a competitor, just not poach the same accounts.

Real examples of non-compete agreement examples for sales representatives often look like this in practice: the rep can join a rival company but is barred from calling on the same customer list for a defined period.

Overbroad nationwide non-compete (and why it often fails)

Now let’s look at an example of non-compete agreement language that sounds powerful for the employer but is frequently unenforceable or heavily narrowed by courts.

Sample clause – Overbroad national ban
“For five (5) years following termination of employment, Employee shall not, anywhere in the United States or any country in which Employer does business, work in any capacity for any business that sells software, technology, or related services.”

Problems with this clause:

• Time: Five years is far longer than courts in most states are willing to accept for a typical sales role.
• Territory: “Anywhere in the United States or any country in which Employer does business” is extremely broad, especially for a rep who may have only handled one region.
• Scope: “Any capacity” for any business that sells software or technology sweeps in roles that have nothing to do with the rep’s former job.

These real examples show up in agreements all the time, but judges in many jurisdictions either strike them or rewrite them to something much narrower.

For a good overview of enforcement trends and state differences, the Federal Trade Commission (FTC) has published research and proposed rules on non-competes, available here: https://www.ftc.gov/legal-library/browse/rulemaking-filing/non-compete-clause-rulemaking

Short-term non-compete for commissioned sales representatives

Commission-heavy roles often justify shorter restrictions because the rep’s pipeline turns over quickly. Here is an example of non-compete agreement language tailored to that reality:

Sample clause – Short-term, commission-focused
“For six (6) months following the end of Employee’s employment, Employee shall not accept employment as a sales representative for any direct competitor of Employer within Employee’s assigned region, limited to the states of Texas and Oklahoma, in connection with the sale of industrial HVAC equipment.”

This example of a non-compete agreement for a sales representative is more likely to be respected by a court because:

• Six months is relatively short.
• The territory is clearly defined (two states).
• The product category is specific (industrial HVAC equipment).

Again, the best examples of non-compete agreement examples for sales representatives tend to mirror the actual scope of the rep’s job, not the entire market.

Non-compete for inside sales and remote reps

Remote and inside sales roles complicate the usual “radius” or “territory” approach. Instead of geography, employers often define the competitive space by customer segments or markets.

Sample clause – Segment-based non-compete
“For 12 months after termination, Employee shall not perform sales or account management services for any business that competes with Employer in the mid-market SaaS segment (companies with annual revenue between \(50 million and \)1 billion) in North America.”

Here, the restriction is built around:

• Customer size (mid-market based on revenue).
• Product type (SaaS – software as a service).
• Region (North America, which may or may not be reasonable depending on the rep’s actual reach).

These segment-focused examples of non-compete agreement examples for sales representatives are increasingly common in 2024–2025 as sales teams go fully remote and territory lines blur.

Industry-specific examples: healthcare and medical device sales

Some of the most litigated non-competes involve medical device and pharmaceutical sales reps, where relationships with surgeons, hospitals, or clinics are extremely valuable.

Sample clause – Medical device sales
“For one (1) year following termination, Employee shall not promote, market, or sell orthopedic implant devices that compete with Employer’s products to any hospital, surgery center, or orthopedic practice within Employee’s former sales territory.”

Why courts sometimes uphold these:

• The restriction is limited to directly competing orthopedic implant devices.
• It applies only to the rep’s former territory.
• The time frame (one year) aligns with typical sales cycles and product adoption.

However, some states (for example, California) heavily restrict or ban non-competes for employees altogether. The California Attorney General explains the state’s position on non-compete clauses here: https://oag.ca.gov/news/press-releases

If you’re looking for the best examples of enforceable non-compete agreement examples for sales representatives in healthcare, they almost always:

• Tie the restriction to a narrow product category.
• Focus on the specific providers or territory the rep actually handled.
• Avoid blanket bans on working for any medical company.

2024–2025 trends affecting non-compete agreements for sales reps

The legal landscape for non-competes is shifting fast, and sales organizations are adjusting how they draft these clauses.

Increased regulatory pressure

The FTC has moved toward a nationwide rule that would sharply limit or ban many employment non-competes. While litigation and political shifts may affect the final outcome, many employers are already:

• Replacing broad non-competes with non-solicitation and confidentiality agreements.
• Narrowing time and territory limits.
• Reserving non-competes for senior or highly paid sales roles.

The FTC’s broader competition policy work, including its stance on non-compete clauses, can be explored on its policy pages: https://www.ftc.gov/policy

State-level crackdowns

States like California, Oklahoma, and North Dakota already bar most employment non-competes. Others (Illinois, Washington, Colorado, and more) have:

• Income thresholds below which non-competes are invalid.
• Strict notice and consideration requirements.

Because of this patchwork, the same clause can be enforceable for a sales representative in one state and void in another. That’s why even the best examples of non-compete agreement examples for sales representatives must be tailored to local law.

Shift toward protecting trade secrets instead of blocking employment

Rather than relying solely on non-competes, many employers now focus on:

• Trade secret laws (for example, under the Defend Trade Secrets Act in the U.S.).
• Strong confidentiality and IP assignment agreements.

The U.S. Patent and Trademark Office offers educational resources on trade secrets and related protections at: https://www.uspto.gov/ip-policy

For sales reps, this means your agreement may contain lighter non-compete language but much heavier confidentiality and data protection clauses.

How to evaluate examples of non-compete agreement examples for sales representatives

When you look at any example of a non-compete agreement for a sales representative, ask three practical questions:

1. Is the restriction no broader than necessary to protect legitimate business interests?
Reasonable interests typically include:

• Protecting confidential pricing, margins, and strategy.
• Preserving goodwill with key customers.
• Preventing immediate, unfair competition using proprietary playbooks.

If the clause blocks you from working in an entire industry worldwide, it’s probably overreaching.

2. Does the time period match the sales cycle?
Shorter terms (6–12 months) are easier to defend. Longer terms might be justified for very long-cycle enterprise or healthcare deals, but they’re harder to enforce.

3. Does the territory or customer scope match your actual role?
Examples include:

• Territory-based: specific states, regions, or mileage radius.
• Customer-based: specific named accounts or customers you actually served.
• Segment-based: defined revenue bands or market segments.

The best examples of non-compete agreement examples for sales representatives are those where you can clearly say, “Yes, this matches what I actually did for the company.”

Practical drafting tips for employers and sales reps

For employers:

• Tie restrictions to real data: actual territories, product lines, or account lists.
• Keep durations realistic; 6–12 months is the norm for many sales roles.
• Use non-solicitation clauses when your main concern is losing customers, not blocking employment.
• Review state law regularly; what worked in 2019 may be risky in 2025.

For sales representatives:

• Ask for specifics: Which competitors? Which territory? Which customers?
• Push to limit the restriction to direct competitors and actual accounts you handled.
• If you change roles (for example, from sales to product training), update the agreement so it reflects your new responsibilities.
• Before signing or changing jobs, consider speaking with an employment attorney in your state; small wording changes can dramatically affect your options.

FAQ: examples of non-compete agreement examples for sales representatives

Q1. Can you give a simple example of a reasonable non-compete for a regional sales rep?
A common example of a non-compete agreement for a regional sales representative is a 12‑month restriction that bars the rep from selling a directly competing product within their former territory (for instance, three neighboring states) to customers they actually served. That kind of targeted clause often has a better chance of being enforced than a broad nationwide ban.

Q2. Are non-compete agreements for sales representatives enforceable everywhere in the U.S.?
No. Some states, like California, generally prohibit employment non-competes, while others allow them under strict limits on time, territory, and scope. That’s why two nearly identical examples of non-compete agreement examples for sales representatives can have very different outcomes depending on where the rep works and which state’s law applies.

Q3. What are examples of overbroad non-compete terms I should watch out for?
Red flags include bans that last several years, apply worldwide or nationwide regardless of your actual territory, or prohibit working “in any capacity” for any company in a very large industry (for example, all technology or all healthcare). Those examples of clauses are often challenged in court and may be narrowed or invalidated.

Q4. Can an employer stop a sales rep from joining a competitor at all?
In some states and for some high-level roles, yes—if the agreement is carefully drafted and reasonable. But many modern agreements instead focus on where and how the rep can compete, using territory limits, product-line restrictions, or customer-specific bans rather than an outright bar on joining any competitor.

Q5. Where can I find more guidance beyond contract examples?
For policy and enforcement trends, the FTC’s non-compete resources are a good starting point. For trade secret and confidentiality issues related to sales playbooks and pricing, the U.S. Patent and Trademark Office offers educational materials. And because enforceability is highly state-specific, speaking with a qualified employment attorney in your jurisdiction is far more reliable than copying generic templates.

These real-world examples of non-compete agreement examples for sales representatives are meant to help you recognize patterns: what courts often accept, what they often reject, and how to negotiate or draft clauses that protect business interests without permanently sidelining a salesperson’s career.