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Non Competition And Confidentiality Agreement

Non Competition And Confidentiality Agreement Template for United States

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Key Requirements PROMPT example:

Non Competition And Confidentiality Agreement

"I need a Non Competition And Confidentiality Agreement for a senior software engineer joining our fintech startup in New York, with particular emphasis on protecting our proprietary trading algorithms and customer data, and preventing them from working for competitors within a 50-mile radius for 12 months after leaving."

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Document background
The Non Competition And Confidentiality Agreement is a crucial document for businesses operating in the United States seeking to protect their competitive advantage and confidential information. This agreement is commonly used when onboarding new employees or contractors who will have access to sensitive business information, trade secrets, or valuable client relationships. The document combines two essential protections: preventing unfair competition and safeguarding confidential information. However, its enforceability varies by state, with some jurisdictions imposing strict limitations on non-compete provisions. Recent federal initiatives and state laws have increased scrutiny of these agreements, particularly for lower-wage workers.
Suggested Sections

1. Parties: Identification of the employer and employee/contractor

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

3. Definitions: Key terms used throughout the agreement including Confidential Information, Restricted Business, Territory

4. Confidentiality Obligations: Scope of confidential information and protection requirements, including use restrictions and security measures

5. Non-Competition Provisions: Scope, duration, and geographic limitations of competition restrictions

6. Term and Termination: Duration of agreement and termination conditions

7. Return of Materials: Requirements for returning confidential information and company property

8. Governing Law: Applicable jurisdiction and choice of law

Optional Sections

1. Non-Solicitation: Restrictions on soliciting employees, customers, or business partners during and after employment

2. Intellectual Property Rights: Ownership and protection of IP created during employment

3. Severance Provisions: Compensation details and benefits post-termination

4. Alternative Dispute Resolution: Mediation or arbitration procedures for resolving disputes

Suggested Schedules

1. Schedule A - Confidential Information: Detailed list of protected information types and categories

2. Schedule B - Restricted Territory: Geographic scope of non-compete restrictions

3. Schedule C - Excluded Information: Information explicitly not considered confidential under the agreement

4. Schedule D - Prior Inventions: List of pre-existing IP owned by employee that is excluded from the agreement

Authors

Alex Denne

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

alex.den.21@genieai.co
Clauses





























Industries

State-Specific Non-Compete Laws: Review of state-specific regulations on non-compete agreements, including California's prohibition, various state limitations on duration and geographic scope, and recent changes in states like Illinois and Washington

Federal Trade Secret Protection: Key federal legislation including the Defend Trade Secrets Act (DTSA), Economic Espionage Act, and Federal Trade Secrets Protection Act, plus the FTC's proposed rule to ban non-compete clauses

Federal Employment Laws: Consideration of Fair Labor Standards Act (FLSA) and National Labor Relations Act (NLRA) implications for non-compete and confidentiality provisions

Executive Branch Developments: Recent developments including President Biden's Executive Order encouraging FTC to ban or limit non-compete agreements and related policy changes

Constitutional Considerations: Analysis of right to work provisions, interstate commerce implications, and public policy concerns affecting enforceability

Industry-Specific Regulations: Special considerations for regulated industries including healthcare, technology, financial services, and professional services sectors

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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