NON-COMPETE AGREEMENT
(Connecticut – Employee)
[// GUIDANCE: This template is intentionally comprehensive. Delete bracketed guidance, complete all placeholders, and tailor scope/duration/consideration to the specific employee, position, and competitive landscape. Connecticut applies a strict “reasonableness” test that balances the employer’s legitimate business interests against the employee’s right to work and the public interest. Over-breadth risks judicial invalidation or blue-penciling.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Consideration
- Restrictive Covenants
- Representations & Warranties
- Term; Termination; Tolling
- Default; Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
NON-COMPETE AGREEMENT (“Agreement”) made as of [EFFECTIVE DATE] (the “Effective Date”) by and between [EMPLOYER LEGAL NAME], a [STATE OF FORMATION] [corporation/LLC/etc.] having its principal place of business at [ADDRESS] (“Employer”), and [EMPLOYEE FULL LEGAL NAME], residing at [ADDRESS] (“Employee”). Employer and Employee are sometimes referred to individually as a “Party” and collectively as the “Parties.”
Recitals
A. Employer is engaged in the business of [BRIEF DESCRIPTION OF BUSINESS] (the “Business”).
B. During the course of Employee’s employment, Employee will obtain specialized knowledge of Employer’s confidential information, goodwill, and trade secrets.
C. Employer desires to protect its legitimate business interests, and Employee desires to accept employment and compensation in exchange for the promises set forth herein.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
2. DEFINITIONS
For purposes of this Agreement, the following capitalized terms have the meanings set forth below. Terms defined in the singular have the same meaning when used in the plural and vice-versa.
“Affiliate” – any entity controlling, controlled by, or under common control with Employer, directly or indirectly.
“Cause” – [customize to align with offer letter/employment agreement].
“Competitive Business” – any individual or entity that, in whole or material part, engages in [DESCRIBE COMPETING PRODUCTS/SERVICES] within the Restricted Territory.
“Confidential Information” – all non-public information regarding Employer, its Affiliates, or the Business, whether oral, written, digital, or otherwise fixed, including trade secrets, customer lists, pricing, marketing plans, product roadmaps, and proprietary processes.
“Restricted Period” – [___] months following the later of (i) termination of Employee’s employment for any reason or (ii) final adjudication of any breach by Employee if the court tolls the period.
“Restricted Territory” – [define with specificity – e.g., within a [___]-mile radius of Employer’s principal office and any location where Employee routinely performed services in the twelve (12) months preceding termination].
[// GUIDANCE: Connecticut courts scrutinize geographic limits closely; tie the territory to actual areas serviced by or known to Employee.]
3. CONSIDERATION
3.1 Initial Consideration. As specific consideration for Employee’s covenants herein, Employer will provide:
(a) [Base salary of $___ per year];
(b) [Sign-on bonus of $___] payable within [__] days of the Effective Date; and
(c) Access to Confidential Information and specialized training not otherwise available to the public.
3.2 Additional Consideration for Post-Hire Covenant. If this Agreement is executed after commencement of employment, Employer will additionally provide [e.g., promotion, raise of $__ or equity grant of __ shares] contemporaneously herewith.
[// GUIDANCE: Under Connecticut common law, continued at-will employment alone is generally sufficient consideration; nevertheless, additional consideration materially strengthens enforceability for post-hire agreements.]
4. RESTRICTIVE COVENANTS
4.1 Non-Competition. During employment and throughout the Restricted Period, Employee shall not, directly or indirectly, within the Restricted Territory:
(a) Own, manage, operate, control, or participate in the ownership, management, operation, or control of any Competitive Business;
(b) Serve as an employee, consultant, officer, director, partner, or advisor to any Competitive Business; or
(c) Intentionally divert or attempt to divert any business opportunity from Employer to a Competitive Business.
4.2 Non-Solicitation of Customers. Employee shall not, for the Restricted Period, solicit or attempt to solicit (i) any customer or prospective customer with whom Employee had material contact during the twelve (12) months preceding termination for the purpose of selling or providing products or services that are competitive with those offered by Employer.
4.3 Non-Solicitation of Employees. Employee shall not, for the Restricted Period, recruit, solicit, or induce any current employee or independent contractor of Employer to terminate or diminish his or her relationship with Employer.
4.4 Confidentiality. Employee will at all times maintain the confidentiality of Confidential Information and use it solely for the benefit of Employer. Upon termination, Employee shall promptly return or securely destroy all tangible embodiments of Confidential Information.
4.5 Permitted Activities. Nothing in this Agreement prohibits Employee from:
(a) Owning up to two percent (2%) of the outstanding equity securities of a publicly traded company engaged in a Competitive Business;
(b) Engaging in volunteer or civic activities that do not compete with Employer;
(c) Practicing a profession if, and only to the extent that, a restriction would violate an express statutory exemption under Connecticut law.
5. REPRESENTATIONS & WARRANTIES
5.1 Mutual Representations. Each Party represents that it has full legal power and authority to enter into and perform this Agreement and that doing so does not conflict with any other agreement or obligation.
5.2 Employee Representations. Employee further represents that:
(a) Employee is not subject to any prior restrictive covenant that would conflict with Employee’s obligations to Employer;
(b) Employee’s execution hereof has not been coerced and Employee has had adequate opportunity to consult independent counsel;
(c) Employee possesses no tangible or electronic property or confidential information belonging to any prior employer.
5.3 Survival. All representations and warranties shall survive termination of employment and remain in effect for the duration of the Restricted Period.
6. TERM; TERMINATION; TOLLING
6.1 Term. This Agreement is effective as of the Effective Date and remains in force through the end of the Restricted Period, except as otherwise provided herein.
6.2 Automatic Tolling. If Employee breaches any covenant in Article 4, the Restricted Period shall be automatically tolled for the time during which the breach continues. This tolling is intended to give Employer the full benefit of the bargained-for restriction.
7. DEFAULT; REMEDIES
7.1 Events of Default. Any breach of Article 4 constitutes an Event of Default.
7.2 Notice and Cure. Employer shall provide written notice describing the alleged breach. If the breach is capable of cure, Employee shall have [__] days to cure. Breaches of confidentiality or direct competition are deemed incapable of cure.
7.3 Primary Remedy – Injunctive Relief. The Parties acknowledge that monetary damages would be inadequate to compensate Employer. Accordingly, upon any breach or threatened breach, Employer is entitled to seek temporary, preliminary, and permanent injunctive relief, specific performance, and equitable accounting in [CONNECTICUT] state courts without the necessity of posting bond.
7.4 Additional Remedies. Employer may also recover (i) actual damages, (ii) disgorgement of profits improperly earned by Employee, (iii) reasonable attorneys’ fees and costs, and (iv) any other relief a court deems appropriate. Remedies are cumulative.
8. RISK ALLOCATION
8.1 Indemnification by Employee. Employee shall indemnify, defend, and hold harmless Employer and its Affiliates, and their respective officers, directors, employees, and agents, from and against any and all losses, liabilities, damages, costs, and expenses (including reasonable attorneys’ fees) arising from or relating to (a) Employee’s breach of this Agreement, or (b) any willful misconduct or gross negligence by Employee in the performance of duties.
8.2 Limitation of Liability. No contractual cap applies.
8.3 Insurance. Employer may, but is not obligated to, maintain key employee or similar insurance on Employee’s life or services. Employee will cooperate with any applications therefor.
8.4 Force Majeure. Neither Party shall be liable for failure to perform due to events beyond its reasonable control; however, this Section does not excuse any payment or confidentiality obligations.
9. DISPUTE RESOLUTION
9.1 Governing Law. This Agreement is governed by and construed in accordance with the laws of the State of Connecticut, without regard to conflicts-of-law principles.
9.2 Forum Selection. The Parties irrevocably submit to the exclusive jurisdiction of the state courts located in [COUNTY], Connecticut, and waive any objection on the grounds of forum non conveniens.
9.3 Optional Arbitration. At Employer’s sole election, any dispute (other than a request for injunctive relief under Section 7.3) shall be resolved by binding arbitration in [CITY], Connecticut before a single arbitrator selected in accordance with the rules of [American Arbitration Association or JAMS] then in effect.
[// GUIDANCE: Replace or delete this Section if arbitration is not desired.]
9.4 Optional Jury Waiver. [IF DESIRED: THE PARTIES WAIVE THEIR RIGHT TO A TRIAL BY JURY IN ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT.]
[// GUIDANCE: Connecticut permits advance contractual jury waivers in commercial contexts, but courts construe them narrowly; ensure conspicuous lettering (e.g., ALL CAPS) in final draft.]
10. GENERAL PROVISIONS
10.1 Amendment; Waiver. No amendment or waiver is effective unless in a written instrument signed by both Parties. A waiver on one occasion is not a waiver of any subsequent breach.
10.2 Assignment. Employee may not assign or delegate any rights or obligations under this Agreement. Employer may assign this Agreement to any successor by merger, consolidation, or asset sale.
10.3 Severability; Reformation. If any provision is found unenforceable, a court of competent jurisdiction may modify or “blue-pencil” the provision to the minimum extent necessary to render it enforceable, and the remainder of the Agreement will remain in full force.
10.4 Entire Agreement. This Agreement, together with any separate confidentiality, invention assignment, and employment agreements between the Parties, constitutes the entire agreement with respect to its subject matter and supersedes all prior understandings.
10.5 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together constitute one instrument. Signatures transmitted by electronic means (e.g., PDF, DocuSign) are deemed original.
10.6 Notice. All notices must be in writing and delivered (i) personally, (ii) by certified mail (return receipt requested), (iii) by nationally recognized overnight courier, or (iv) by email with confirmation of receipt, to the addresses set forth below (or such other address a Party may designate). Notice is effective upon receipt.
11. EXECUTION BLOCK
IN WITNESS WHEREOF, the Parties have executed this Non-Compete Agreement as of the Effective Date.
| EMPLOYER | EMPLOYEE |
|---|---|
| [EMPLOYER LEGAL NAME] | [EMPLOYEE FULL LEGAL NAME] |
| By: _________ | ______ |
| Name: _______ | |
| Title: ________ | |
| Date: ________ | Date: _______ |
[Optional Notary Acknowledgment if required for recordation or additional evidentiary weight.]
[// GUIDANCE: Final Checklist for Connecticut Compliance
1. Duration: 6–12 months is presumptively reasonable; >24 months invites scrutiny.
2. Geographic Scope: Tie to actual territory serviced or learned by Employee.
3. Consideration: Confirm that new or additional consideration exists if signed after employment begins.
4. Exemptions: If Employee is a physician, advanced practice registered nurse, or other statutorily protected profession, consult Conn. Gen. Stat. § 20-14p et seq.
5. Copy to Employee: Provide fully executed copy within a reasonable time after signing (best practice: at or before start date).]