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Temp Agency Non Compete Agreement for the United States

Temp Agency Non Compete Agreement Template for United States

This agreement is designed for use in the United States between temporary staffing agencies and their workers to protect business interests by restricting post-employment competition. It outlines specific limitations on working with competitors, soliciting clients, or engaging with other temporary staffing agencies for a defined period and within a specific geographic area. The agreement must comply with varying state laws, as some jurisdictions heavily restrict or prohibit such agreements.

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Temp Agency Non Compete Agreement

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What is a Temp Agency Non Compete Agreement?

The Temp Agency Non Compete Agreement serves as a critical tool for protecting temporary staffing agencies' legitimate business interests in the competitive U.S. staffing market. This document establishes clear boundaries for temporary workers regarding their ability to work with competing agencies or directly with clients after their engagement ends. Given the varying state regulations and recent federal scrutiny of non-compete agreements, this document requires careful consideration of jurisdiction-specific requirements and must be tailored to ensure enforceability while maintaining reasonable restrictions on time, geography, and scope.

What sections should be included in a Temp Agency Non Compete Agreement?

1. Parties: Identification of the temp agency, worker, and client company if applicable

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

3. Definitions: Key terms used throughout the agreement including restricted business, territory, and confidential information

4. Scope of Restrictions: Specific activities prohibited during and after employment, including competition and solicitation provisions

5. Duration: Time period for which restrictions apply, accounting for state-specific limitations

6. Geographic Limitations: Physical boundaries of restriction and their justification

7. Consideration: Value provided in exchange for the agreement, including any special compensation or benefits

8. Enforcement: Rights and remedies in case of breach, including injunctive relief and damages

What sections are optional to include in a Temp Agency Non Compete Agreement?

1. Garden Leave: Optional provisions for paid leave during restriction period, typically used for higher-level positions

2. Client Protection: Additional provisions specifically protecting client relationships and contacts

3. Confidentiality: Supplementary confidentiality provisions when a separate NDA is not in place

4. Training Reimbursement: Provisions for recovery of training costs when significant training investment is involved

What schedules should be included in a Temp Agency Non Compete Agreement?

1. Schedule A - Restricted Clients: List of specific clients covered by non-compete restrictions

2. Schedule B - Geographic Territory: Detailed description and maps of restricted geographic area

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

4. Appendix 1 - State-Specific Provisions: Additional terms and modifications required by specific state laws

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

Jurisdiction

United States

Document Type

Agency Agreement

Cost

Free to use
Clauses




























Industries

State-Specific Non-Compete Laws: Non-compete laws vary significantly by state, with some states like California prohibiting them almost entirely, while others impose specific duration and scope restrictions. Recent reforms in states like Illinois and Washington have further limited non-compete agreements.

FTC Proposed Rule 2023: The Federal Trade Commission's proposed rule from 2023 which aims to ban non-compete clauses nationwide, potentially affecting the enforceability of such agreements.

Federal Antitrust Laws: Federal antitrust regulations that may impact the scope and enforcement of non-compete agreements, particularly in terms of market competition and labor mobility.

Fair Labor Standards Act: Federal law governing wage and hour standards that must be considered when drafting employment-related agreements, including non-competes.

National Labor Relations Act: Federal law protecting workers' rights to organize and bargain collectively, which may affect the terms and conditions of non-compete agreements.

Employment Classification Requirements: Considerations regarding temporary worker status vs. employee status, independent contractor regulations, and the joint employer doctrine as they apply to non-compete restrictions.

Time Limitations: Requirements for reasonable time restrictions in non-compete agreements, which must be limited to protect legitimate business interests without unduly burdening workers.

Geographic Scope Restrictions: Rules regarding reasonable geographic limitations in non-compete agreements, which must be properly tailored to the employer's legitimate business territory.

Legitimate Business Interests: Legal requirement that non-compete agreements must protect legitimate business interests such as trade secrets, confidential information, or customer relationships.

Consideration Requirements: Legal requirement that employees must receive adequate consideration (something of value) in exchange for signing a non-compete agreement.

Garden Leave Provisions: Emerging trend in non-compete agreements where employers pay employees during the restricted period after employment termination.

Wage Thresholds: Recent legal trends establishing minimum salary thresholds below which non-compete agreements cannot be enforced.

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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