Best Examples of Non-Compete Agreement Language Examples for 2025

Short, Plain-English Non-Compete Clause (Starter Example)

Let’s begin with a simple, readable clause. Many people searching for examples of non-compete agreement language examples just want a clean baseline they can customize.

Example 1 – Basic employee non-compete (short form)
“During your employment with the Company and for a period of 12 months after your employment ends for any reason, you agree not to work, directly or indirectly, for any business that competes with the Company in providing [describe products/services] within a 50‑mile radius of any location where you regularly worked for the Company in the 12 months before your employment ended.”

Why this works:

• Uses plain English instead of dense legal jargon.
• Limits time (12 months) and geography (50 miles), which courts often expect.
• Ties the restriction to the actual business activities.

If you compare this to other examples of non-compete agreement language examples you’ll see online, the key difference is specificity. Courts in the U.S. increasingly reject vague bans like “any competing business anywhere in the world.”

Geographic Scope: Examples of Narrow vs. Overbroad Language

Example of local-only restriction

Example 2 – Local market non-compete
“For 9 months after your employment ends, you will not accept employment in a sales or business development role with any company that sells [product/service] to customers located within the states of [list states], where you personally managed or solicited accounts during the last 12 months of your employment.”

This kind of clause focuses on regions where the employee actually worked. Modern courts often favor examples of non-compete agreement language examples that are limited to real markets, not hypothetical future territories.

Example of multi-country restriction (for international roles)

Example 3 – Cross‑border non-compete
“For 12 months following the end of your employment, you agree not to engage, whether as an employee, consultant, or owner, in any business that offers [product/service] in any country in which you had responsibility for sales, marketing, or operations on behalf of the Company during the 24 months before your employment ended.”

This is more realistic for executives or global sales leaders. Instead of naming every country, it ties the scope to where the person actually had responsibility—an approach often seen in better drafted examples of non-compete agreement language examples in multinational agreements.

Time Limits: Examples Include 6, 12, and 24-Month Clauses

Courts look closely at duration. In many U.S. states, 6–12 months is common for employees, while 18–24 months might be reserved for senior executives or business sellers.

Example 4 – Short duration (6 months)
“For 6 months after the termination of your employment, you will not perform the same or substantially similar job duties for a competitor within the same metropolitan area where you worked for the Company.”

Example 5 – Longer duration for executives (18–24 months)
“For a period of 18 months following the termination of your employment for any reason, you shall not, within the United States, engage in any capacity (including as an employee, officer, director, consultant, or owner) with any business that competes directly with the Company’s [defined business line]. This restriction is limited to the business unit(s) for which you had strategic or managerial responsibility during the 24 months prior to termination.”

These are realistic examples of non-compete agreement language examples that explain why the duration is longer (strategic or managerial responsibility) rather than imposing a blanket ban on all work.

For up‑to‑date state‑by‑state information on enforceability and reasonable durations, HR and legal teams often track developments through government and academic sources, such as:

• Federal Trade Commission overview of non-compete policy: https://www.ftc.gov
• State law summaries compiled by law schools (for example, Harvard Law School’s labor and worklife resources: https://hls.harvard.edu)

Defining “Competition”: Best Examples That Avoid Overreach

Many agreements fail because “competitor” is defined too broadly. Here are more precise examples of non-compete agreement language examples that narrow the field.

Example 6 – Product-line specific definition
“For purposes of this Agreement, a ‘Competing Business’ means any company that derives at least 25% of its revenue from the design, development, or sale of cloud‑based payroll software to small and mid‑size employers in the United States.”

Example 7 – Industry and customer segment focus
“A ‘Competing Business’ is any business that provides online meal‑kit delivery services to residential customers and operates in any state where the Company delivered more than 1,000 orders in the 12 months prior to the end of your employment.”

These examples of non-compete agreement language examples make it clear the employee is not banned from the entire tech or food industry—only from a narrow slice. This kind of precision has become more important as regulators and courts scrutinize non-competes for low‑ and mid‑wage workers.

The U.S. Department of Labor and the FTC have both highlighted overbroad non-competes as a competition and worker mobility issue, reflecting a trend toward narrower, better justified restrictions.

Role-Based Restrictions: Sales, Engineers, and Executives

Example of non-compete language for sales employees

Example 8 – Sales-focused restriction
“For 12 months after your employment with the Company ends, you will not, on behalf of a Competing Business, sell, market, or promote products or services that are the same as or similar to the products or services you sold, marketed, or promoted for the Company to any customer or prospective customer you contacted, solicited, or served in the 18 months before your employment ended.”

This style of clause is common in examples of non-compete agreement language examples for sales teams because it ties the restriction to customer relationships and specific products.

Example of non-compete language for engineers and product staff

Example 9 – Technical role restriction
“For 9 months after your employment ends, you will not perform software engineering, product development, or technical leadership services for a Competing Business in any area where such services would reasonably be expected to use or rely on the Company’s confidential technical information, including source code, system architecture, or proprietary algorithms that you accessed during your employment.”

This version quietly blends non-compete and trade secret protection. It reflects a 2024–2025 trend: instead of broad bans on working for a competitor, employers increasingly focus on preventing use of confidential information, which is more defensible under trade secret laws.

For reference on trade secret standards, see the U.S. Copyright Office and related resources: https://www.copyright.gov

Example of non-compete language for senior executives

Example 10 – Executive-level clause
“For 24 months after the termination of your employment, you will not, anywhere in North America, serve in any executive, managerial, or advisory role for a Competing Business that operates in the [specific industry segment], where your responsibilities would reasonably be expected to overlap with the strategic, financial, or operational responsibilities you held at the Company.”

Again, the restriction is tied to the executive’s actual scope of responsibility, a pattern you’ll see in better drafted examples of non-compete agreement language examples used for C‑suite contracts.

Non-Compete Alternatives: Non-Solicitation and Confidentiality Examples

In many U.S. states (California is the classic example), employee non-competes are largely unenforceable. Even where they’re allowed, regulators are pushing employers to consider narrower tools first. That’s why smart agreements now include strong non-solicitation and confidentiality clauses.

Example of customer non-solicitation clause

Example 11 – Customer non-solicit
“For 12 months following the end of your employment, you agree not to directly or indirectly solicit, divert, or take away any customer or prospective customer of the Company with whom you had contact, responsibility, or access to confidential information during the 12 months before your employment ended, for the purpose of providing products or services that compete with the Company.”

Example of employee non-solicitation clause

Example 12 – Employee non-solicit
“For 12 months after your employment ends, you will not directly or indirectly recruit, solicit, or encourage any employee of the Company to leave their employment with the Company, nor will you assist any other person or entity in doing so.”

Example of confidentiality clause that supports a narrower non-compete

Example 13 – Confidential information protection
“You agree that you will not, during or after your employment, use or disclose any of the Company’s confidential or proprietary information, including but not limited to non‑public financial data, customer lists, pricing strategies, marketing plans, source code, and trade secrets, except as required in the ordinary course of your duties for the Company.”

These are often paired with shorter, narrower non-competes. In modern examples of non-compete agreement language examples, especially in tech and professional services, employers lean heavily on confidentiality and non-solicitation because they are more likely to be enforced and less likely to trigger regulatory scrutiny.

For further reading on the policy debate and emerging trends, the Economic Policy Institute and other research groups publish regular analyses of non-compete impacts: https://www.epi.org

2024–2025 Legal Trends That Affect Non-Compete Language

If you’re looking at older templates, you’ll notice that many examples of non-compete agreement language examples from a decade ago are now out of date. A few key trends:

• Regulatory pressure in the U.S.
  The Federal Trade Commission announced in 2023 a proposed rule that would significantly limit non-competes for many workers. While litigation and political changes may affect the final outcome, the direction of travel is clear: broad, one‑size‑fits‑all non-competes are under heavy scrutiny.

• State‑level bans and wage thresholds.
  Several states restrict non-competes for lower‑wage workers or ban them outright in certain industries (for example, some healthcare roles). Agreements that once used the same language for hourly staff and executives now need separate, tailored provisions.

• Focus on fairness and transparency.
  Courts are more likely to enforce agreements that are explained clearly, provided in advance of employment or promotion, and paired with some form of consideration (such as a signing bonus, promotion, or severance). Hidden or last‑minute non-competes are increasingly vulnerable.

• Shift toward targeted protection.
  Instead of banning all competitive work, many of the best examples of non-compete agreement language examples now focus on specific customers, territories, or confidential information. Employers who update their language accordingly are better positioned if a dispute reaches court.

Because the legal landscape is active and state‑specific, businesses should treat these examples as starting points and confirm compliance with local law, often with the help of counsel familiar with employment law in their jurisdiction.

Drafting Tips: How to Use These Examples Without Copy-Paste Trouble

Reading examples of non-compete agreement language examples is helpful, but copying them word‑for‑word can backfire if you don’t adapt them to your situation. A few practical pointers:

• Match the clause to the role.
  A junior customer support representative should not be bound by the same restrictions as a regional sales director or CTO. Narrow the scope of work, geography, and duration for each level.

• Describe the business accurately.
  Update the definition of “Competing Business” when your company adds or drops product lines. Old definitions can accidentally block employees from working in fields you no longer touch.

• Check state and country law.
  A clause that is enforceable in Texas may be void in California or limited in the UK. Before finalizing language, compare your draft against recent decisions or summaries from reliable legal sources, including government or university publications.

• Explain the rationale.
  Some modern agreements include a short explanation that the non-compete is intended to protect trade secrets, confidential information, and customer relationships—not to block employees from earning a living. While not magic language, this can make your agreement look more reasonable to a court.

• Pair with fair compensation.
  In some jurisdictions, continued employment is not enough consideration for a new non-compete. Signing bonuses, raises, promotions, or severance pay tied to the restriction can make enforcement more likely.

Using these examples of non-compete agreement language examples as templates—rather than rigid scripts—helps you strike a better balance between protecting the business and respecting employee mobility.

FAQ: Real Examples and Common Questions About Non-Compete Language

Q1. Can you give a simple example of non-compete agreement language for a small business?
Yes. A simple example of non-compete language for a small local business might say: “For 6 months after your employment ends, you will not open, work for, or assist any competing [type of business] within 10 miles of the Company’s location.” Even this should be checked against local law, but it captures the basic idea in plain English.

Q2. Are non-compete agreements enforceable everywhere in the United States?
No. Some states sharply limit or ban non-competes for employees, especially lower‑wage workers. Others allow them but require reasonable limits on time, geography, and scope. That’s why using local, up‑to‑date examples of non-compete agreement language examples is more reliable than copying an old national template.

Q3. What are some common mistakes in non-compete language?
Common mistakes include banning work “anywhere in the world” when the company only operates in a few states, applying the same clause to interns and executives, and failing to define what a “Competing Business” is. Another frequent problem: ignoring statutory changes that make older examples of non-compete agreement language examples too broad or completely unenforceable.

Q4. Is a non-solicitation clause enough without a non-compete?
In many industries, a well‑drafted non-solicitation and confidentiality package is often more enforceable—and less controversial—than a full non-compete. Whether it is “enough” depends on the risk: for some highly sensitive R&D or C‑suite roles, employers still prefer a narrow non-compete on top of non-solicitation.

Q5. Do I need a lawyer to draft a non-compete?
Given the rapidly changing legal landscape and the state‑specific rules, getting legal review is strongly recommended. You can absolutely start from the examples of non-compete agreement language examples in this guide, but a lawyer familiar with local employment law can flag problems and adjust the language so it stands a better chance in court.

Bottom line: Use these real‑world examples as a drafting toolkit, not a one‑size‑fits‑all template. Narrow, clearly written non-competes—supported by strong confidentiality and non-solicitation clauses—are far more likely to survive legal scrutiny in 2024–2025 than the broad, vague restrictions that used to be standard.