Get released from a previous non-compete agreement or clause prohibiting you from competing in a similar area of work.
Updated August 29, 2024
Written by Sara Hostelley | Reviewed by Brooke Davis
A release of a non-compete agreement is a document that eliminates a non-compete agreement on mutually agreed terms. Non-competes can often be restrictive, especially if you work in a highly specialized field. You may need to negotiate a release with your current or former employer to take another job or advance your career.
You may use a non-compete release form if you leave your employer but plan to start a business or advance in the same career field. It averts business conflicts arising when your employer acquires or merges with another company. The form can also help you move forward in case of signing a non-compete as part of selling your business.
Companies generally use such agreements to protect their business interests. Convincing them to release a non-compete clause or agreement can present a challenge, so you should research and prepare for negotiations in advance.
Follow these steps to secure a release:
Not all non-competes are legally binding. You may find the agreement unenforceable upon reviewing your documents and applicable laws. In some cases, local or state laws limit how restrictive a non-compete can be. Understanding the applicable laws can help you determine how to approach the release discussion.
For example, California and North Dakota have placed large-scale bans on non-competes; however, it is still advisable to carefully review the agreement before you sign.
Some companies plan for employees to request a non-compete release by adding a specific clause to the employment agreement. Your employer may require the request in writing or offer to release the non-compete agreement or clause for a fee, a transaction known as a purchase of release.
In addition to adhering to the rules of your release, if included in your agreement, you can formally request the release from the other party via e-mail or a letter. Depending on the terms of the agreement, it is advisable to propose either monetary compensation or alternative valuable considerations as a means to secure your freedom.
Your request can look something like this:
I am writing to formally request a release from the non-compete agreement that I previously signed. It has come to my attention that this agreement poses significant challenges to my ability to pursue employment in my skilled profession. Regrettably, I was unaware of the extent of these difficulties when I initially agreed to the terms.
I am earnestly seeking your assistance in granting me a release from this non-compete restraint. I am prepared to offer payment or any other form of valuable consideration as a gesture of goodwill in exchange for your favorable response to this request.
I kindly request that you reach out to me at your earliest convenience to discuss this matter further. You can contact me either by telephone at [TELEPHONE] or via email at [E-MAIL].
Thank you for your attention to this matter.
Negotiating the release involves finding ways for both sides to benefit from the release. Depending on the circumstances, your employer may opt for a release with exceptions.
A release without exceptions fully releases you from legal liability. A release with exceptions, however, places certain restrictions on that release.
For example, restrictions on working with competing businesses in the same geographical area may be lifted. Still, you may be prohibited from taking your clients to the new company.
Once you reach an agreement, complete the non-compete release form template and sign. The agreement becomes legally binding when both parties have signed.
Details are crucial for an effective non-compete release form. Protect yourself from misunderstandings and potential legal issues by including the following items in your release:
If your non-compete release includes exceptions, be sure to note these exceptions in detail. A clear, concise release agreement can help you communicate effectively and avoid associated legal issues. It can also help you maintain a positive relationship with individuals and businesses you may need to work with in the future.
Download a release of non-compete agreement template in PDF or Word format.
