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Sales Non Compete Agreement Template for United States

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Key Requirements PROMPT example:

Sales Non Compete Agreement

"I need a Sales Non Compete Agreement for our medical device sales team in Florida, restricting employees from working with competitors within a 100-mile radius for 18 months after leaving, with specific protections for our customer relationships and pricing strategies."

Document background
The Sales Non Compete Agreement serves as a crucial tool for businesses to protect their customer relationships, confidential information, and market position. This document becomes particularly important in sales contexts where employees develop close client relationships and gain intimate knowledge of pricing strategies, customer needs, and business methods. While subject to varying levels of enforcement across U.S. states, with some jurisdictions requiring careful drafting to ensure validity, these agreements typically specify restricted activities, geographic scope, and duration. The agreement must balance the employer's legitimate business interests with the employee's right to earn a living, often requiring careful consideration of state-specific requirements and recent legal developments, including potential federal regulations.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including legal names and addresses

2. Background/Recitals: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Restrictions: Specific activities prohibited during the non-compete period

5. Duration: Time period for which the non-compete restrictions apply

6. Geographic Limitations: Territorial scope of the non-compete restrictions

7. Consideration: What the restricted party receives in exchange for the non-compete

8. Confidentiality Obligations: Protection of confidential information and trade secrets

9. Enforcement: Rights and remedies in case of breach

Optional Sections

1. Garden Leave: Provisions for paid leave during restriction period - used when employer wants to pay employee during non-compete period

2. Non-Solicitation: Restrictions on soliciting customers or employees - used when additional protection against customer/employee poaching is needed

3. Training Reimbursement: Provisions for recovering training costs - used when significant training investment has been made

4. Severability: Provisions for partial enforcement if parts are found invalid - particularly important in states with strict non-compete enforcement

Suggested Schedules

1. Schedule A - Restricted Territory: Detailed map or list of geographic areas covered by restrictions

2. Schedule B - Restricted Activities: Detailed list of prohibited activities and business areas

3. Schedule C - Consideration Details: Breakdown of compensation or benefits provided

4. Schedule D - Protected Customers: List of customers covered by non-solicitation provisions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses

























Industries

State-Specific Laws: Non-compete laws vary significantly by state. Some states like California largely prohibit non-competes, while others like Florida actively enforce them. Must verify specific state requirements for enforceability.

Federal Laws: Key considerations include the FTC's proposed rule (2023) to ban non-compete agreements, Sherman Antitrust Act implications, and federal anti-trust regulations.

Common Law Principles: Essential elements including reasonable scope of restrictions, legitimate business interests, time limitations, geographic limitations, and protection of trade secrets.

Specific Legal Requirements: Must include consideration, clear definition of prohibited activities, reasonable duration (typically 6 months to 2 years), reasonable geographic scope, and protection of legitimate business interests.

Related Laws: Consideration of Defend Trade Secrets Act, state trade secret laws, employment laws, and contract law principles.

Constitutional Considerations: Address right to work principles, interstate commerce implications, and public policy concerns.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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