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Non Compete Agreement & Why You Might Need One Form

Use a Non Compete Agreement Template & Why You Might Need One template to make your document workflow more streamlined.

What this non-compete form does

A Non Compete Agreement & Why You Might Need One Form records an employer’s and employee’s agreement about limited post-employment competition. It identifies the parties, consideration, restricted activities, geographic area, duration, effective date, and governing law. The employee reviews those terms and signs with intent; the employer countersigns and retains the completed record. In the United States, ESIGN and UETA generally recognize qualifying electronic signatures, but state law determines whether a particular restriction is enforceable. Courts may examine legitimate business interests, reasonable scope, and the circumstances of signing.

Business types using non-compete agreements

The form is most useful when a business can identify a legitimate interest and tailor restrictions to the employee, market, and governing state law.

  • A solo consulting firm can use the agreement when engaging a specialist who receives confidential client methods, pricing information, or business strategy and may later compete within a defined market.
  • A healthcare practice can route an employee agreement through HR while restricting access to personnel records and avoiding unnecessary protected health information in the non-compete document itself.
  • A growing technology enterprise can use controlled templates and delegated sending for multiple hires, while legal reviewers adjust duration, geography, consideration, and governing-law language for each state.

These tasks are executed by both individual contributors and centralized administrators depending on organizational policy and required controls.

How to complete the agreement online

Follow this sequence to prepare the exact agreement, assign its parties, collect signatures, and preserve evidence of completion.

  • Review the agreement:

    Upload the non-compete agreement to signNow and confirm the document contains the employee, employer, consideration, scope, duration, and governing-law terms.
  • Place required fields:

    Let signNow auto-detect fillable fields, then place signature, date, initials, and acknowledgment fields beside the exact clauses each party must accept.
  • Assign the signers:

    Assign the employer and employee roles, set the signing order, and verify each recipient’s email address before sending the agreement.
  • Send for signature:

    Send the agreement through signNow, monitor completion, and address any declined or corrected field before finalization.
  • Store the record:

    Download or store the completed agreement with its certificate of completion and audit trail for the organization’s records.

Ways to send and sign the agreement

  1. Use the signNow web app to upload the agreement, review auto-detected fillable fields, assign employee and employer roles, and send the document for an ordinary office workflow.
  2. Use the signNow mobile app when an employee or manager must review and sign the agreement away from a desk, while preserving the same completed document and audit trail.
  3. Use kiosk mode for supervised signing at an onboarding desk when the organization controls the device and must guide the employee through the agreement without creating separate accounts.
  4. Generate a shareable signing link when the agreement template is approved and recipients can access it through a controlled hiring or onboarding channel.
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Legal standing of a signed agreement

A non-compete agreement can document the parties’ intent, consideration, and acceptance, while signNow preserves attribution, timestamps, and the completed record. ESIGN and UETA generally recognize qualifying electronic signatures, but enforceability depends on state law, contract terms, and applicable restrictions; wills and court orders remain excluded.

Why teams look for DocuSign alternatives

Recommended agreement workflow settings

Configure the agreement workflow to preserve signer identity, documented intent, access control, and retrievable records under ESIGN, UETA, and applicable state law.

SettingRecommendation
Authentication methodEmail verification with SMS OTP
Signature typeIntent-based electronic signature
Audit trailExport certificate of completion
Document retentionRetain through the employment record policy
Encryption and provisioningAES-256 storage with role-based access

What the signNow audit trail records

The audit trail documents the signing event separately from the agreement’s substantive legal terms, helping preserve evidence of who acted and when.

01

Authenticate signers:

SignNow records the selected signer and configured authentication events for the employee and employer.
02

Capture timestamps:

The audit trail records when the agreement was opened, viewed, signed, declined, or completed.
03

Record document integrity:

The completed document is associated with its signing history and recorded document integrity events.
04

Seal completion evidence:

A certificate of completion links the finished agreement to the signing participants and transaction history.
05

Retrieve the record:

The sender can retrieve the completed agreement and its audit trail from the signNow account.
06

Export audit evidence:

Authorized users can export the agreement and audit evidence for controlled business storage or review.

Features for completing this agreement

A signNow workflow can connect the agreement’s specific restrictions with assigned fields, signer verification, completion evidence, and controlled storage.

Field detection

Upload the agreement to signNow and review automatically detected fields before assigning each signature, date, initials, or acknowledgment field to the correct participant.

Signing order

Route the agreement to the employee and employer in a defined order, preserving the completed sequence and each signer’s recorded action in the audit trail.

Signer verification

Use SMS authentication or another configured verification method to strengthen attribution when the agreement contains sensitive employment restrictions or confidential business information.

Audit evidence

Store the completed agreement with its certificate of completion and audit trail, helping the organization retrieve evidence of intent, access, and signing events.

Controlled templates

Reuse an approved agreement template while requiring authorized reviewers to confirm employee-specific scope, duration, geography, consideration, and governing-law language before sending.

Mobile completion

SignNow supports mobile signing, allowing employees and managers to complete the agreement on supported iOS or Android devices without a paper exchange.

Best practices for agreement records

Accurate drafting, controlled access, and complete signing records help preserve the specific evidence needed to evaluate a non-compete agreement under state law.

Keep the signed agreement with its audit trail

Keep the signed non-compete agreement, certificate of completion, audit trail, and later amendments in one controlled record. Apply an internal retention period tied to employment records and state law, then document any legal hold that suspends scheduled deletion.

Export completion evidence after signing

Export the signNow audit trail with the completed PDF after every agreement is finalized. Preserve signer email addresses, timestamps, authentication events, IP information, and document history so the business can explain how the employee reviewed and accepted the specific restrictions.

Review scope and consideration fields

Before sending, verify the employee name, employer legal name, consideration language, restricted activity, geographic area, duration, governing law, and effective date. These fields determine whether the agreement describes a specific bargain rather than an ambiguous restraint.

Control template access before circulation

Restrict template editing to authorized HR or legal users, and use a controlled template for recurring agreements. SignNow role-based access and shared templates can reduce unauthorized changes while preserving a record of the version presented to each employee.

Agreement preparation and signing timeline

The workflow has four practical stages, while the agreement’s enforceability and retention depend on its terms, state law, and organizational policy.

01

Prepare the document

Confirm the employee, employer, consideration, restricted activity, geographic area, duration, effective date, and governing-law terms before sending.
02

Deliver to signers

Send the agreement through signNow after assigning the employee and employer fields and checking each recipient email address.
03

Await signer review

The employee reviews and signs according to the agreement and applicable state requirements; no universal federal turnaround deadline applies.
04

Complete and archive

After all required fields are completed, preserve the signed PDF, certificate of completion, and audit trail under the organization’s record policy.

Privacy and disclosure issues to prevent

  • Including unnecessary personal information can expose employee data beyond the people who need to evaluate or administer the agreement.
  • Failing to capture electronic-consent evidence can weaken proof that the employee agreed to receive and sign the document electronically.
  • Leaving the agreement template editable after legal approval can create inconsistent duration, geography, or restricted-activity language across employees.
  • Sending a signing link through an uncontrolled channel can make it harder to establish that the intended employee completed the agreement.

Risks of an incomplete agreement

State-law challenge

Overbroad scope

Contract dispute

Missing consideration

Attribution gap

Wrong signer

Enforcement dispute

Unclear duration

Non-compete agreement troubleshooting questions

Use these answers to resolve signing, scope, authentication, retention, and plan questions before circulating a non-compete agreement.

A non-compete clause may be unenforceable if its geographic scope, duration, or restricted activity is broader than state law permits. signNow records intent, consent, timestamps, and the completed agreement, but a court decides enforceability under applicable state law.

Upload the completed agreement to signNow, review detected fields, and assign each field to the correct signer. The Business plan includes templates and audit trails, while Business Premium adds bulk send when multiple individualized agreements require distribution.

SignNow supports electronic signatures under ESIGN and UETA when intent, consent, attribution, and record retention are established. Consumer-facing transactions may also require the ESIGN paper-record disclosure under 15 U.S.C. §7001(c).

Use signNow authentication settings to require email verification or SMS-based two-factor authentication before signing. Stronger identity checks help establish attribution, but they do not replace required consideration, lawful scope, or state-specific employment review.

Keep the signed agreement, certificate of completion, and audit trail together in signNow or an approved archive. Retention is governed by business policy and applicable state law because no single federal retention period applies to every non-compete agreement.

SignNow's Business plan is $8 per user per month with annual billing and includes 100 signature invites per user per year. Business Premium is $15 and adds bulk send; Enterprise is $30 and adds advanced signer authentication.

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