How to Draft a Non-Compete Clause

Many businesses hire independent contractors. Part of the hiring process usually includes signing a non-compete clause. This protects the business from having the contractor work on his own and take present clients with him. Draft a non-compete clause on your own or hire an attorney to do this for you. Read on to learn how to draft a non-compete clause.

Instructions

1. Decide what provisions you want your non-compete clause to protect. For example, if your contractor is hired to sell widgets to your clients, draft the clause to disallow the contractor to go into the widget-selling business on his own.

2. Define exactly what you want your non-compete clause to say. For example, it could say, "Contractor may not engage in the business of selling widgets while working as a contractor for 'XYZ' or for a period of five years after resigning from 'XYZ'."

3. Consult an attorney versed in business law to take a look at the draft of your non-compete clause. She will advise you of the correct legal terms to use. Alternatively, have this attorney finish drafting the non-compete clause.

4. Buy a template of a non-compete clause from a store that sells legal forms (See Resources) and fill in the blanks. You may need to reword this generic form to fit your exact requirements.

5. Present the finished draft of the non-compete clause to the contractor. Rewrite any portions until both of you are in agreement. Sign the final version of the non-compete clause.

Resources

• Form to Draft a Non-compete Clause