What does a non-compete agreement look like—and why should you care?
Whether you’re starting a new job, moving to a competitor, or running a business that needs to protect its client base, a non-compete agreement example can help you visualize how these restrictions work in the real world.
Non-competes have been in the national spotlight due to high-profile court cases and proposed Federal Trade Commission (FTC) rules that could limit or ban them in certain situations. While some states, like California, prohibit them almost entirely, others—including Florida and Georgia—actively enforce them when drafted within legal boundaries.
This guide explains exactly what non-competes are and how they work. It includes three realistic non-compete agreement examples so you can see the language for yourself.
What Is a Non-Compete Agreement?
A non-compete agreement is a legal contract—often a clause within a broader employment agreement—that prevents an employee from engaging in activities that compete with their employer’s business after leaving the job.
These restrictions can apply to:
- Working for a competitor
- Starting your own competing business
- Soliciting the employer’s clients or employees
Historically, non-competes began as a way to protect trade secrets in industries like manufacturing. Today, they’re used in a wide range of fields—from technology and healthcare to sales, finance, and even service industries like salons and restaurants.
Why employers use them:
Businesses argue they’re necessary to protect:
- Proprietary information
- Client relationships
- Specialized training investments
Why employees push back:
Many worry that these policies unfairly limit job opportunities, suppress wages, and restrict career mobility, especially when applied in low-wage or unrelated roles.
What Makes a Non-Compete Enforceable?
The enforceability of a non-compete depends heavily on state law. Courts look for balance: the agreement must protect a legitimate business interest without placing an unreasonable burden on the employee’s ability to work.
Core factors courts examine:
- Legitimate business interest: Is the employer protecting trade secrets, confidential information, or long-term client relationships?
- Reasonable time duration: Typically 6 months to 2 years; anything longer is often challenged.
- Geographic scope: Must be tied to where the company does business; overly broad “nationwide” clauses are risky.
- Clear prohibited activities: Must define exactly what type of work or contact is restricted.
Non-Compete Agreement Examples (Illustrative Only)
Below are three short non-compete agreement examples that reflect common contract language. These are for example purposes only and should not be used as legal templates.
Non-Compete Agreement Example #1: 12-Month, Local Radius
“The Employee agrees that for twelve (12) months following the termination of employment, they shall not engage in, or be employed by, any business that competes with the Company within a 50-mile radius of the Company’s primary office in Tampa, Florida.”
Analysis:
This sample non-compete agreement ties its restriction to both time (12 months) and geography (50 miles). Such a clause is more likely to be enforced if it’s directly related to legitimate business interests and the geographic limit aligns with the employer’s actual operations.
Employee perspective: Could negotiate for a smaller radius or shorter duration.
Employer perspective: Ensure the 50 miles is genuinely relevant to where competition occurs.
Non-Compete Agreement Example #2: Industry-Specific Restriction
“For 18 months after leaving the Company, the Employee shall not work in any sales capacity for a direct competitor in the pharmaceutical industry within the state of Georgia.”
Analysis:
This sample non-compete agreement is limited by industry and job role, which strengthens enforceability in Georgia. Courts are more likely to uphold industry-specific restrictions that mirror the employee’s former duties.
Employee perspective: Could ask for the restriction to apply only to specific clients or product lines.
Employer perspective: Avoid blanket bans that cover unrelated roles.
Non-Compete Agreement Example #3: Customer Solicitation Clause
“The Employee agrees not to solicit or accept business from any client or customer of the Company with whom the Employee had material contact during the last 12 months of employment, for one (1) year post-termination.”
Analysis:
This sample non-compete agreement is often used alongside or instead of broader non-compete clauses. This type targets specific customer relationships. It’s easier to enforce when limited to clients the employee interacted with.
Employee perspective: Request a clear definition of “material contact”.
Employer perspective: Keep lists of client contacts current and specific.
Key Clauses in a Non-Compete Agreement
Whether you’re signing or drafting one, understanding the building blocks of a non-compete agreement is essential.
1. Time Restriction
- Most common: 6–24 months.
- Courts disfavor indefinite or lengthy durations without substantial justification.
- Law presumes 6 months reasonable; over 2 years is presumed unreasonable.
2. Geographic Scope
- Must be tied to actual market presence.
- Overly broad “anywhere in the U.S.” language can be struck down.
- In service businesses, even a 5–10 mile radius can be enough.
3. Prohibited Activities
- Define precisely what “competing” means.
- Tie it to industry, products, and/or client base.
- Avoid vague “any competing business” phrasing.
4. Legitimate Business Interest
To be enforceable, the agreement must protect:
- Confidential information
- Trade secrets
- Substantial client relationships
- Specialized training investments
Courts are more skeptical when non-competes seem designed to prevent ordinary job changes rather than protect genuine interests.
Why Non-Competes Can Be Controversial
According to the National Employment Law Project, nearly 1 in 5 U.S. workers is bound by a non-compete. That includes not only executives and engineers, but also hourly workers in industries like fast food and retail.
Criticisms include:
- Wage suppression: Workers with fewer job options have less leverage to negotiate pay.
- Limited mobility: Even unenforceable agreements can scare employees away from pursuing other jobs.
- Overreach: Applying them to low-wage roles where no real trade secrets exist.
When to Talk to a Non-Compete Lawyer
You should consider consulting an attorney if:
- You’re offered a job with a non-compete agreement in the contract.
- You’re leaving a job and want to join a competitor.
- You’ve been threatened with legal action over a non-compete.
- You’re an employer drafting agreements for new hires.
Proactive review can help you negotiate fairer terms before signing. Waiting until after a dispute arises can limit your options.
Final Thoughts
The non-compete agreement examples in this guide show how language, scope, and intent can determine enforceability. Even slight differences—such as duration, geography, or the activities restricted—can mean the difference between a valid agreement and one that won’t hold up in court. While employers have a right to protect legitimate business interests, employees have the right to pursue their careers without unnecessary restrictions. If you’re dealing with a non-compete agreement, don’t assume it’s automatically enforceable or void. Laws vary state by state, and the details matter.
Cantrell Schuette provides experienced legal guidance nationwide. Our team helps employees protect their careers and employers safeguard their businesses, starting with clear, enforceable agreements that balance protection with fairness. Contact us today to schedule a consultation and get clarity on your rights and obligations.
