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.] | ||||||||
| Independent Consideration | a signing bonus, access to Employer's confidential information and customer relationships, and specialized trainingState-law basis a signing bonus, access to Employer's confidential information and customer relationships, and specialized trainingReference only — not part of this agreement. Recite any concrete, independent benefit provided for a post-hire covenant instead of relying only on continued employment. | ||||||||
| Governing Law | Missouri | ||||||||
| Confidentiality | |||||||||
| Trade Secrets Duration | Perpetual | ||||||||
| Other Confidential Information Duration | 24 months | ||||||||
| Employee Non-Solicitation | |||||||||
| Duration | 12 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 → | ||||||||
| 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. | ||||||||
| No Business with Covered Customers | |||||||||
| Duration | 12 monthsState-law basis 12 monthsReference only — not part of this agreement. 12 months sits within the current-customer window. Because non-dealing has no category of its own, it is drawn to fit inside the current-customer non-solicit exception, and its duration tracks that category's presumption. | ||||||||
| Non-Investment | |||||||||
| Duration | 12 months | ||||||||
| Non-Disparagement | |||||||||
| Duration | 24 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 Employee actually serviced, solicited, or had substantial contact with, or for whom Employee had responsibility, during the 12 months before termination of employment. Covered Customers does not include a customer with whom Employee had no such relationship, and does not include a prospective customer Employee never serviced.
“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 Employer's Trade Secrets and goodwill in customer relationships with which Employee had substantial contact and an opportunity to influence.
“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” means information that derives independent economic value from not being generally known or readily ascertainable and that Employer takes reasonable measures to keep secret.
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 greater than is necessary to protect that interest. The parties acknowledge that Employer would not provide Employee with access to its trade secrets and customer relationships absent the protections in this agreement. Each covenant is intended to be no more restrictive than is necessary to protect a Protected Interest.
Drafting Note Protectable interest
A Missouri covenant reaches only two protectable interests — specific trade secrets and the customers the employee actually serviced — so a restraint written to block ordinary competition disconnected from either interest guards nothing the law will enforce and does not survive no matter how it is drafted. A covenant tied to identified trade secrets or serviced customers is measured against the interest it protects, and the trade-secret protections available under the Uniform Trade Secrets Act stand independently of the covenant's reach .
3. Timing, Consideration, and Employee Acknowledgements
The parties acknowledge that this agreement is supported by adequate and independent consideration, namely a signing bonus, access to Employer's confidential information and customer relationships, and specialized training, conferred on Employee in exchange for Employee's assent to the covenants in this agreement. Employee acknowledges having had the opportunity to consult with independent legal counsel before signing this agreement. This agreement is effective as of the Effective Date listed in Cover Terms.
Drafting Note Independent consideration
A Missouri non-compete resting on continued at-will employment as its only consideration rests on a promise the employer was already free to withhold — Baker held such a promise illusory, and Durrell applied that reasoning directly to a non-compete — so bare continued-employment consideration is a standing litigation risk rather than a settled footing . A covenant supported by independent consideration — a signing bonus, a raise, specialized training, or another concrete benefit documented at signing — rests on ground Baker and Durrell do not reach, while a covenant staked on the JumboSack continued-employment-plus-access theory alone hangs enforceability on a question Missouri has not resolved.
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.
7. Non-Solicitation of Employees
During the Restricted Period, which must not exceed one year for this covenant, Employee must not Solicit, recruit, hire, or attempt to hire any Covered Employee, or otherwise interfere with the employment of 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 does not apply to any Covered Employee who provided only secretarial or clerical services.
Drafting Note The one-year employee no-hire safe harbor
An employee no-hire or anti-raiding covenant in the agreement is measured against the section 431.202 safe harbor: a covenant resting on no separate protectable interest is conclusively presumed reasonable only where its post-employment duration runs no more than one year, so a term set past one year loses that conclusive presumption and falls back to a facts-and-circumstances reasonableness inquiry . The one-year route does not reach an employee who provided only secretarial or clerical services, so a covenant that binds clerical staff on the strength of duration alone sits outside the safe harbor and stands only on an independent protectable interest .
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 applies only to Covered Customers whom Employee actually serviced or had substantial contact with.
Drafting Note The serviced-customer limit on a customer non-solicit
Section 431.202 does not reach a customer non-solicitation covenant, so a customer restriction stands or falls on the common-law reasonableness test rather than the one-year safe harbor. A covenant that reaches customers regardless of the employee's relationship with them — including prospective customers the employee never served — is broader than the employer's legitimate customer-contacts interest and overbroad as written, the defect that left the Whelan clause enforceable only as to its serviced-customer core . A customer non-solicit confined to customers the employee actually serviced or had substantial contact with is measured against the interest it protects, and it pairs with the confidentiality and trade-secret protections that do not depend on the covenant's reach.
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 covenant applies only to Covered Customers whom Employee actually serviced or had substantial contact with.
10. 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. Passive Public Holdings are permitted.
11. 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.
12. Physician and Health Care Practitioner Covenants
If Employee is a physician or other health care practitioner, each restriction applies only during the Restricted Period and within the Restricted Territory stated in Cover Terms.
Drafting Note The reasonableness standard for physician covenants
A physician or other health-care covenant in the agreement is tested under the ordinary Copeland reasonableness standard, not a profession-specific cap: Missouri fixes no statutory duration or radius for physician non-competes, so a physician restraint holds only to the extent it is no more restrictive than is necessary to protect the employer's trade secrets or customer contacts — here, patient and referral relationships . A physician covenant carried over from a jurisdiction that does cap duration or radius, or drafted to a broad radius and a long term, is measured against that reasonableness standard alone and against the patient-access and continuity-of-care interests a court weighs. The 365-day, five-mile framework proposed for nonprofit-employer physician covenants in HB 2979 had not been enacted as of this review, so a covenant drafted in anticipation of it rests on law that does not yet govern .
13. 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.
14. 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.
15. 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, up to a maximum extension equal to the original Restricted Period.
Drafting Note The reasonableness ceiling on an extension-on-breach term
Missouri law does not clearly require a court to toll or extend a restricted period during a breach or during litigation, so an extension-on-breach term operates as a contractual extension whose added time is itself part of the restraint measured for reasonableness. An extension that pushes an employee non-solicitation covenant past the one-year duration keyed to the section 431.202 conclusive presumption trades a known-good duration for an open reasonableness question . An extension that stretches any covenant beyond its stated time terms is tested against the same time-and-geography reasonableness the covenant must satisfy in the first place, so a tolling clause left open-ended or indefinite exposes the covenant to a reasonableness challenge it would otherwise avoid .
16. 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 Missouri Uniform Trade Secrets Act for actual or threatened misappropriation of a trade secret.
17. Enforceability and Severability
If any provision of this agreement is found to be unenforceable, the remaining provisions remain in full force and effect.
18. 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. Each covenant's survival period runs independently for the duration specified for that covenant in Cover Terms. All other provisions survive to the extent necessary to enforce rights that arose during employment.
19. 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. An assignee takes this agreement subject to the same limits and acquires no greater rights than Employer holds under it.
20. 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.
21. 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. 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: