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Employee Restrictive Covenant Agreement

Cover Terms

The terms below are incorporated into and form part of this agreement.

Employer[Legal name of the employer]
Employee[Full legal name of the employee]
Employee Title / Position
Effective Date[Effective date of this agreement]
Governing LawAlaska
Covenant Relationship Typeemployment
Confidentiality
Trade Secrets DurationPerpetual
Other Confidential Information Duration24 months
Employee Non-Solicitation
Duration24 months
Market benchmark 24 months · modal of 67 filed agreements

Reference only — not part of this agreement.

Alaska sets no statutory cap on duration; enforceability turns on the fact-bound Data Management reasonableness factors rather than a fixed number. 24 months matches the modal employee non-solicit term observed in benchmarked, publicly-filed employee agreements; 12 months is the common lighter alternative, and counsel should size the term to the employer's actual protectable interest.

View more details in benchmark survey (as of July 3, 2026) →
Customer Non-Solicitation
Duration12 months
Market benchmark 12 months · modal of 67 filed agreements

Reference only — not part of this agreement.

Alaska sets no statutory cap. Metcalfe upheld a narrow customer-list restraint even without a stated durational limit, but a stated period is easier to defend; 12 months is the lighter side of the near-even 12/24-month split observed in benchmarked, publicly-filed employee agreements — a conservative duration counsel should size to the actual customer relationships protected.

View more details in benchmark survey (as of July 3, 2026) →
Non-Competition
Duration12 months
Market benchmark 12 months · modal of 70 filed agreements

Reference only — not part of this agreement.

Alaska imposes no statutory cap on duration; time limits are one Data Management factor among many, weighed together with territory against the employer's real protectable interest, so there is no safe-harbor number. 12 months matches the modal non-compete term observed in benchmarked, publicly-filed employee agreements — a conservative default counsel should size to the actual role and market rather than copy from another form.

View more details in benchmark survey (as of July 3, 2026) →
Restricted Territorythe geographic area in which Employee provided services
Competitive Business[Description of the business activities that constitute competition with the employer.]
Specified Competitors
No Business with Covered Customers
Duration12 months
Non-Investment
Duration12 months
Non-Disparagement
Duration24 months

Standard Terms

1. Defined Terms

“Competitive Business” means the business activities described in Cover Terms under Competitive Business.

“Confidential Information” means non-public information relating to Employer's business, including trade secrets, customer lists, pricing, business processes, technical data, and strategic plans, but excluding information that becomes public through no fault of Employee.

“Covered Customers” means customers, vendors, referral sources, and business partners whom Employer procured at its own expense and with whom Employee had material contact or for whom Employee had responsibility during the 12 months before termination of employment.

“Covered Employees” means employees with whom Employee worked or whom Employee managed during the 12 months before termination of employment.

“Passive Public Holdings” means ownership of securities of a publicly traded company representing less than five percent of any class of such company's securities, and interests in diversified mutual funds, index funds, and exchange-traded funds that may hold securities of a Competitive Business.

“Protected Interests” means the legitimate business interests a covenant may protect under Alaska's common-law reasonableness rule, namely Employer's Confidential Information, Employer's trade secrets as defined by the Alaska Uniform Trade Secrets Act (AS 45.50.940), and Employer's goodwill in its customer, vendor, referral-source, and business-partner relationships, but not Employer's interest in avoiding ordinary competition.

“Restricted Period” means the duration specified in Cover Terms for each covenant, beginning on the date Employee's employment with Employer ends for any reason.

“Restricted Territory” means the geographic area described in Cover Terms under Restricted Territory.

“Solicit” means to directly or indirectly contact, approach, induce, encourage, or provide Confidential Information to any person or entity for the purpose of diverting business away from Employer, but does not include responding to general advertisements or unsolicited inquiries not initiated by Employee.

“Trade Secrets” has the meaning given in the Alaska Uniform Trade Secrets Act, AS 45.50.940.

2. Recitals and Protectable Interests

Employer and Employee acknowledge that each restrictive covenant in this agreement is intended to protect one or more of Employer's Protected Interests and to impose no restraint broader than is reasonably necessary for that protection. The parties acknowledge that each covenant is meant to guard Employer's Confidential Information, trade secrets, and customer goodwill and not to eliminate ordinary competition, and that each restraint is intended to be no broader than reasonably necessary in duration, geographic scope, and activity to protect the interest at stake.

Drafting Note The reasonable-necessity gate

Every covenant in the agreement stands or falls on Alaska's common-law reasonableness analysis: there is no general non-compete statute, non-competition agreements are strictly construed, and a restraint aimed at eliminating ordinary competition or cutting off the worker's livelihood fails no matter how modestly its time and territory are drawn . Reasonableness is fact-bound and weighed across the Data Management factors — the time-and-space limits, whether the worker was the sole customer contact, whether the worker held confidential information or trade secrets, whether the restraint targets unfair competition or merely ordinary competition, the hardship to the worker, and whether it bars the worker's sole means of support — so no term or territory is safe by rule and each restraint is measured against the interest at stake . Adequate consideration establishes only that a covenant is supported, not that it is reasonable, and an extension of the restricted period for breach is itself a restraint measured under those same fact-bound factors, so the covenant that survives is the one sized to the employer's actual footprint at signing rather than copied from another form .

3. Timing, Consideration, and Employee Acknowledgements

The parties acknowledge that this agreement is supported by adequate consideration. Because this agreement may be signed at the outset of employment or during employment, the parties recite the actual exchange supporting the covenants — which may include initial or continued employment, access to Confidential Information and customer relationships, training, compensation, a raise, or a bonus — as evidence of the consideration given. If this agreement is signed at the outset of employment, the offer and commencement of employment is the consideration. Employee acknowledges having had the opportunity to consult with independent legal counsel before signing this agreement. Employee acknowledges that the restrictions in this agreement are reasonable and necessary to protect Employer's Protected Interests, and understands that adequate consideration establishes only that the covenants are supported, not that they are reasonable, so each covenant remains independently subject to the reasonableness limits stated in this agreement. This agreement is effective as of the Effective Date listed in Cover Terms.

4. Confidential Information and Trade Secret Protection

Employee must treat all Confidential Information as strictly confidential. Employee must not use or disclose Confidential Information except as required to perform authorized job duties or with Employer's prior written consent. Employee's obligations regarding trade secrets continue in perpetuity, for as long as the information remains a trade secret. Employee's obligations regarding other Confidential Information continue for the period specified in Cover Terms. This confidentiality obligation is intended to operate alongside, and independent of, any restrictive covenant, and does not restrict Employee's use of the general knowledge, skill, and experience Employee acquired during employment.

5. Permitted Disclosures and Protected Conduct

Nothing in this agreement prohibits Employee from: (a) reporting possible violations of law to any government agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, or any other federal, state, or local agency; (b) making disclosures protected under whistleblower provisions of any law; (c) discussing wages, hours, or other terms and conditions of employment as protected by applicable law, including Section 7 of the National Labor Relations Act (29 U.S.C. § 157); (d) testifying truthfully in legal proceedings; or (e) filing a sealed complaint in court using Confidential Information without liability. Pursuant to the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), Employee may not be held criminally or civilly liable for disclosing a trade secret in confidence to a government official or attorney solely for the purpose of reporting or investigating a suspected violation of law, or in a sealed court filing.

6. Return, Deletion, and Certification of Company Property

Upon termination of employment, Employee must promptly return to Employer all documents, devices, files, credentials, and other materials containing or relating to Confidential Information. Where permitted, Employee must permanently delete electronic copies of Confidential Information from personal devices and accounts. Employee must certify compliance with this section in writing upon Employer's request. The parties intend that these return, deletion, and certification mechanics support Employer's protection of its Confidential Information and trade secrets.

7. Non-Solicitation of Employees

During the Restricted Period, Employee must not Solicit, recruit, hire, or attempt to hire any Covered Employee. This restriction does not prohibit Employee from providing a professional reference upon request or from hiring a person who responds to a general advertisement not directed specifically at Employer's employees. This covenant reaches only Covered Employees during the Restricted Period and is no broader than necessary to protect Employer's workforce stability and goodwill.

8. Non-Solicitation of Customers, Vendors, Referral Sources, and Business Partners

During the Restricted Period, Employee must not Solicit the business of any Covered Customer. This covenant is limited to the information and customers Employer procured at its own expense; it reaches only Covered Customers with whom Employee had material contact and leaves Employee free to compete generally. This covenant does not apply where Employee had no access to Confidential Information relating to the Covered Customer.

Drafting Note Customer-list restraints

A customer restraint in the agreement earns Metcalfe's lighter treatment only by staying tied to the information and customers the employer procured at its own expense; so scoped, it can survive even without a stated territory or duration because the worker remains free to compete generally . Two limits define the edge: a customer set so broad that the restraint amounts to a bar on practicing the specialty is drafted too wide, and a court requires narrower drafting, while a covenant not to contact former customers is unreasonable where the worker had no access to confidential information about them . A restraint pushed past those limits reads as an open-ended ban on working in the field rather than a customer-list restraint, and loses the narrower analysis Metcalfe allows.

9. No Business with Covered Customers

During the Restricted Period, Employee must not accept, service, or do business with any Covered Customer, regardless of whether Employee or the Covered Customer first initiated contact. This restriction is broader than non-solicitation because it applies even if the Covered Customer approaches Employee. The parties intend it to remain limited to the customers and information Employer procured at its own expense and not to expand into a bar prohibiting Employee from practicing his or her specialty; the parties intend this covenant to be narrowed to that limit rather than to fail. It reaches only Covered Customers with whom Employee had material contact and to whom Employee had access to Confidential Information.

10. Non-Competition

During the Restricted Period, Employee must not engage in, be employed by, consult for, or have an active ownership interest in any Competitive Business within the Restricted Territory. This covenant exists to protect Employer's Protected Interests — its Confidential Information, trade secrets, and customer goodwill — and not to restrain ordinary competition. The parties intend this covenant to be reasonably necessary to protect Employer's Protected Interests and no broader than needed, with its time and territory sized to Employee's actual role and Employer's actual market. If Employer has identified specific competitors in Cover Terms under Specified Competitors, the parties intend this covenant to be understood and, if necessary, enforced as limited to those named competitors. Passive Public Holdings are permitted.

11. Non-Investment

During the Restricted Period, Employee must not acquire or hold any active ownership interest in, serve as a director, officer, manager, or advisor to, or have material economic participation in any Competitive Business. This restriction primarily targets active or material ownership in private competitors and is drawn no broader than necessary to protect Employer's Protected Interests. Passive Public Holdings are permitted.

12. Sale-of-Business Covenants

Where the covenant relationship type in Cover Terms is a sale of a business, any covenant tied to that sale is drafted as a covenant against competition that protects the goodwill the buyer purchased, and not as a ban on practicing a profession in any capacity or as an ordinary employment restraint. The parties intend any such covenant to be reasonably necessary to protect that purchased goodwill and no broader than needed, weighing the buyer's interest in the goodwill against the hardship to the seller and any injury to the public, rather than to rely on a radius-and-duration check alone.

Drafting Note The sale-of-business and public-injury balance

A sale-of-business covenant in the agreement is read as a covenant against competition protecting the goodwill the buyer purchased, not as a ban on practicing the profession in any capacity, and it is weighed as a three-way balance: the buyer's need to protect that goodwill, the hardship to the seller, and the likely injury to the public . That public-injury prong sharpens on health-care facts — where the restrained work serves a population needing important low-cost care, competition is not presumed and must be proven, and even proven competition leaves the court weighing the harm to patient access . A covenant tied to a sale, or one restraining a clinician, that is sized only to a radius and a duration is measured against a balance it was never drafted to survive, so the covenant that holds is drawn to the purchased goodwill and the public interest it affects — and where the covenant later changes hands in the sale, that same balance travels with it.

13. Non-Disparagement

During the Restricted Period specified in Cover Terms for Non-Disparagement, Employee must not make statements that are intended to or reasonably likely to disparage Employer, its officers, directors, employees, products, or services. This section does not restrict Employee from making truthful statements in legal proceedings, providing truthful testimony, making disclosures to government agencies, or exercising rights protected by law, including rights protected under Section 7 of the National Labor Relations Act.

14. Physician and Health Care Practitioner Covenants

Any covenant in this agreement restraining Employee from the practice of a health-care profession is intended to use a narrow radius and a short term, to preserve patient access and continuity of care, and to be reasonably necessary and no broader than needed to protect Employer's Protected Interests. Where the restrained work would affect free or low-cost care for a population in need, the parties intend any such covenant to be weighed against the injury to the public's access to that care, not against radius and duration alone.

15. No Conflicting Obligations

Employee represents that performing duties for Employer and complying with this agreement does not conflict with any prior agreement, court order, or legal obligation binding on Employee. Employee must promptly disclose to Employer any potential conflict that arises during employment.

16. Notice to Future Employers and Other Third Parties

Employer may disclose the existence and terms of this agreement to any prospective employer or business associate of Employee if Employer has a reasonable belief that Employee may breach this agreement. Employee consents to this disclosure.

17. Tolling During Breach

If Employee breaches any restrictive covenant in this agreement, the Restricted Period for that covenant is extended by one day for each day of the breach, so that the full duration of the restriction runs from the date the breach ends. The parties do not intend an open-ended or indefinite extension, and any extension remains subject to the reasonableness limits stated in this agreement.

18. Remedies

Employee acknowledges that a breach of this agreement may cause Employer irreparable harm for which money damages would be inadequate. Employer may seek injunctive or other equitable relief in addition to any other remedies available at law, including relief under the Alaska Uniform Trade Secrets Act, under which a court may enjoin actual or threatened misappropriation of a trade secret (AS 45.50.910(a)) independent of any covenant.

19. Enforceability and Severability

If any provision of this agreement is found to be unenforceable, the remaining provisions remain in full force and effect. Each restrictive covenant in this agreement is intended to be independently enforceable, so that a court's refusal to enforce one covenant, or a court's decision to enforce a covenant only to a reasonable extent, does not affect the others.

20. Reasonable Alteration

Employer requests reasonable alteration only if a restraint in this agreement is found to be overbroad. Each restrictive covenant is drawn as a tiered, severable restraint sized to the Protected Interests from the start and is intended to be enforceable as written rather than in reliance on judicial revision.

Drafting Note Reasonable alteration

Alaska is not a mechanical blue-pencil state: its narrowing power is a reasonable-alteration rewrite rather than word deletion, and a court reforms an overbroad covenant only where the covenant can be made enforceable and the employer carries the burden of proving it was drafted in good faith . Where the employer has overreached willfully the court refuses to alter the covenant at all, so a covenant that drafts broad and counts on judicial rescue stakes its enforceability on a good-faith showing the employer must affirmatively win . A covenant drawn as a tiered, severable restraint sized to the protectable interest at signing stands on its own terms rather than on that rescue.

21. Survival and Expiration of Each Covenant

Each restrictive covenant in this agreement survives the termination of Employee's employment for the Restricted Period specified in Cover Terms. Obligations under the Confidential Information and Trade Secret Protection section survive indefinitely to the extent they relate to trade secrets. All other provisions survive to the extent necessary to enforce rights that arose during employment.

22. Assignment and Successors

Employee may not assign this agreement or any rights or obligations under it. Employer may assign this agreement to any affiliate, successor, or acquirer of all or substantially all of Employer's business or assets. This agreement is binding on and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns. Any covenant tied to a business sale is read together with the Sale-of-Business Covenants section.

23. Governing Law, Venue, and Dispute Process

This agreement is governed by the law listed in Cover Terms. Disputes will be resolved in the courts of the Governing Law state, subject to non-waivable rights under applicable law. The parties intend that the governing-law and venue choices match where Employee actually lives and works.

24. Entire Agreement, Amendment, Waiver, and Electronic Signatures

This agreement constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior agreements, understandings, and negotiations on this subject, whether written or oral. No prior or contemporaneous oral promise or side agreement on this subject is part of the parties' bargain or enforceable against either party. This agreement may be amended only in writing signed by both parties. A party's failure to enforce any provision does not waive that party's right to enforce it later. This agreement may be executed in counterparts, including by electronic signature, each of which is an original.

Signatures

By signing this agreement, each party acknowledges and agrees to the restrictive covenant obligations above. Employee confirms having read and understood each provision, including the Cover Terms.

Employer

Employer: [Legal name of the employer]

Signature:

Signatory Name: [Full name of the authorized signatory signing for the employer]

Title: [Title of the authorized signatory signing for the employer]

Date:

Employee

Signature:

Print Name: [Full legal name of the employee]

Date:

Authored by OpenAgreements contributors. Alaska-specific analysis informed by the quote-verified Alaska practice note. Licensed under CC BY 4.0.