Employee Restrictive Covenant Agreement
Cover Terms
The terms below are incorporated into and form part of this agreement.
| Employer | [Legal name of the entity that employs the employee] | ||||||||
| Employee | [Full legal name of the employee] | ||||||||
| Employee Title / Position | |||||||||
| Effective Date | [Effective date of this agreement — the date the last party signs. It anchors the duration presumptions stated in Cover Terms.] | ||||||||
| Governing Law | Minnesota | ||||||||
| Venue | the state courts located in MinnesotaState-law basis the state courts located in MinnesotaReference only — not part of this agreement. Select a forum permitted by the non-waivable law applicable to the employee. | ||||||||
| Confidentiality | |||||||||
| Trade Secrets Duration | Perpetual | ||||||||
| Other Confidential Information Duration | 24 months | ||||||||
| Customer Non-Solicitation | |||||||||
| Duration | 12 monthsState-law basis 12 monthsReference only — not part of this agreement. 12 months sits well inside the presumptively reasonable window for a current-customer non-solicit: eighteen months, or for as long as post-separation consideration is paid, whichever is greater. Counsel may extend toward eighteen months, or longer while post-separation consideration is paid, where the interest supports it. | ||||||||
| Covered Customer Look-Back | 12 months | ||||||||
| Employee Non-Solicitation | |||||||||
| Duration | 24 monthsMarket benchmark HideShow
Why this selected default?Why is this the selected default?24 months matches the modal employee non-solicit term observed in benchmarked, publicly-filed employee agreements; 12 months is the common lighter alternative. The Act sets no express duration presumption for the no-hire category, so the uniquely-essential scope limit does the primary category work; counsel should size the term to the workforce interest actually protected. Showing 3 representative examples. Company names link directly to the underlying SEC filing.
Showing 3 representative examples. Company names link directly to the underlying SEC filing.
Showing 3 representative examples. Company names link directly to the underlying SEC filing.
Showing 3 representative examples. Company names link directly to the underlying SEC filing. See all 3 examples in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark → | ||||||||
| Covered Employee Look-Back | 12 months | ||||||||
| Non-Disparagement | |||||||||
| Duration | 24 months |
Standard Terms
1. Defined Terms
“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 only those customers, clients, vendors, referral sources, and business partners of Employer with whom Employee had material contact, or for whom Employee had responsibility, during the 12 months before termination of employment.
“Covered Employees” means only those employees of Employer with whom Employee worked, or whom Employee supervised or managed, during the 12 months before termination of employment.
“Protected Interests” means Employer's trade secrets, Confidential Information, company property, legally protected business information, and Employer's relationships with its Covered Customers and its workforce.
“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.
“Solicit” means for Employee to directly or indirectly initiate contact with, approach, induce, or encourage a person or entity for the purpose of diverting business or employment away from Employer. Solicit does not include passively receiving an inquiry that Employee did not initiate, responding to a general advertisement or an unsolicited approach, or continuing to serve a Covered Customer who follows Employee without any initiating contact by Employee.
“Trade Secrets” means information that qualifies for protection as a trade secret under applicable law, including information that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, another person who can obtain economic value from its disclosure or use.
2. Timing and Employee Acknowledgements
This agreement contains confidentiality, company-property, non-disparagement, and defined non-solicitation obligations and no covenant prohibiting Employee from working for a competitor. This agreement is effective as of the Effective Date listed in Cover Terms. Employee acknowledges having had the opportunity to consult with independent legal counsel before signing this agreement.
Drafting Note Functional non-compete
For Minnesota agreements after July 1, 2023, separate permitted confidentiality, trade-secret, customer-list, and nonsolicitation language from any ban on working for a competitor. A nonsolicit that functions like a work ban may be treated as non-compete risk even if the label is different .
3. 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. These obligations do not prohibit Employee from working for another employer.
4. 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 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.
5. 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.
6. Non-Solicitation of Customers
During the Restricted Period specified in Cover Terms for Customer Non-Solicitation, Employee must not Solicit the business of any Covered Customer for the purpose of diverting that business away from Employer. This covenant does not prohibit Employee from working for a competitor, competing with Employer generally, or doing business with a customer who is not a Covered Customer.
7. Non-Solicitation of Employees
During the Restricted Period specified in Cover Terms for Employee Non-Solicitation, Employee must not Solicit, recruit, or induce any Covered Employee to leave Employer's employment. This covenant does not prohibit Employee from providing a professional reference on request, hiring a person who responds to a general advertisement not directed specifically at Employer's employees, or working for a competitor.
8. 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, discussing wages, hours, or other terms and conditions of employment as protected by Section 7 of the National Labor Relations Act, 29 U.S.C. § 157, or otherwise exercising rights protected by law.
9. 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.
10. Notice to Future Employers and Other Third Parties
Employer may disclose the existence and terms of Employee's confidentiality, trade-secret, return-of-property, non-disparagement, and other lawful obligations under this agreement to any prospective employer or business associate of Employee if Employer has a reasonable belief that Employee may breach those lawful obligations. Any such disclosure is limited to Employee's lawful obligations under this agreement and does not extend to any covenant not to compete. Employee consents to this disclosure.
11. 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 to prevent actual or threatened misappropriation of trade secrets and to enforce Employee's confidentiality, non-disparagement, and return-of-property obligations. Injunctive relief is available only to enforce obligations that are enforceable under Minnesota law; no provision of this agreement entitles Employer to enjoin Employee from working for a competitor. If a party prevails in an action to enforce a lawful obligation under this agreement, the non-prevailing party must reimburse the prevailing party's reasonable attorney's fees and costs to the extent permitted by applicable law.
12. 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 a separate obligation.
13. 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 for the Trade Secrets Duration specified in Cover Terms to the extent they relate to trade secrets, and for the Other Confidential Information Duration specified in Cover Terms for other Confidential Information. All other provisions survive to the extent necessary to enforce rights that arose during employment. Nothing survives that this agreement does not lawfully contain, including any covenant not to compete.
14. 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. Assignment moves the covenants that are enforceable under Minnesota law to the assignee; it does not enlarge them.
15. Governing Law, Venue, and Dispute Process
This agreement is governed by the law listed in Cover Terms. An Employee who primarily resides and works in Minnesota may bring any claim arising under this agreement in Minnesota, and Minnesota law governs any controversy arising in Minnesota.
Drafting Note Law and forum
Do not rely on Delaware, New York, Texas, or another state's law to preserve a Minnesota employee non-compete. For workers who primarily reside and work in Minnesota, use Minnesota forum and Minnesota law for section 181.988 disputes, or expect the employee to challenge the clause .
16. 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. This agreement may be amended only in writing signed by both parties, and no amendment may add a covenant not to compete that is void under Minn. Stat. § 181.988. 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 entity that employs the employee]
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: