Checklists
What to Look For Before Signing a Non-Compete
December 21, 20245 min read
A non-compete can significantly impact your career. Review these points carefully before signing.
Duration Checklist
- ☐ Time period is specified (not "perpetual")
- ☐ Duration is reasonable for your industry (usually 6-24 months)
- ☐ Clock starts from termination date (not signing)
Geographic Scope Checklist
- ☐ Geographic limitation is specified
- ☐ Area matches where you actually worked
- ☐ NOT a worldwide or nationwide restriction (unless justified)
Scope of Activity Checklist
- ☐ "Competitor" is clearly defined
- ☐ Restrictions apply to similar roles only (not any position)
- ☐ Industries covered are specific
- ☐ Permitted activities are clear
Exceptions Checklist
- ☐ Termination without cause ends non-compete (or reduces it)
- ☐ Company breach ends non-compete
- ☐ Relocation by company addressed
Consideration Checklist
- ☐ What you receive for signing is clear
- ☐ In some states, employment alone isn't sufficient consideration
- ☐ Any garden leave or compensation during restriction
State Law Checklist
- ☐ Know your state's law on non-compete enforceability
- ☐ Choice of law provision—which state's law applies?
- ☐ Some states ban or restrict non-competes
Questions to Ask
- ☐ Can the duration be reduced?
- ☐ Can geography be narrowed?
- ☐ Can we define "competitor" more specifically?
- ☐ What happens if I'm terminated without cause?
- ☐ Can I get garden leave (paid non-compete period)?
Frequently Asked Questions
How long is too long for a non-compete?
Generally, 6-12 months is reasonable for most roles. 2 years is often the upper limit courts will enforce. Anything longer faces significant scrutiny and may be unenforceable.
Should non-competes apply if I'm fired?
Ideally no. Try to negotiate an exception for termination without cause. If you're let go through no fault of your own, it's unfair to also restrict your ability to find new work.
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