How to Waive a Non-Compete Agreement

Some good things come to an end

Employers sometimes will agree to waive all or part of a non-compete in return for some form of compensation, usually from its current or former employee but sometimes from companies proposing to hire the employee. For example, it is not uncommon for employers to waive a non-compete in exchange for its employee agreeing to forego some or all of the severance due and payable to him. The process of waiver will involve agreement to and execution of a waiver agreement or an exhibit to the original non-compete. Here's how you can beat a non-compete agreement.

Instructions

1. Research and review the law relating to non-compete agreements in your jurisdiction. During this process, it is important that you place particular emphasis on familiarizing yourself with any statutory or case law relating to waiver of non-compete agreements. There are a number of online research resources, but a visit to a local law library might be helpful as well. If there is no specific law in your jurisdiction relating to waiver of non-compete agreements, proceed to Step 2.

2. Review the original non-compete agreement and determine whether it contains termination or waiver provision. Most non-compete agreements will have a clause stating that failure to demand from the other party remedy of a breach of one provision does not constitute waiver of a subsequent breach of the same provision; and a clause stating that any changes to the agreement must be in written form agreed to and signed by all parties.

3. Draft the waiver of the non-compete following any applicable statutory and case law, as well as any waiver or termination provisions in the non-compete agreement being waived. The waiver agreement should specifically reference the original non-compete agreement, its date and the names of the parties. Send a copy of the waiver agreement to all parties for review and final approval.

4. Prepare two originals of the waiver agreement for signature by the parties. Each party should sign above where his name appears, and initial any other pages in addition to the signature page. The two signed copies should serve as duplicate originals, one of which should go to each party.

Tips & Warnings

• The information provided in this article is for informational purposes only and does not constitute legal advice. Laws relating to different types of non-compete agreements can vary from jurisdiction to jurisdiction. If you have a legal question relating to non-compete agreements, you should consult with an attorney who is licensed in your jurisdiction.