ContractsCounsel Logo

Non-Compete Agreement Cost

Updated: August 11, 2023
Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 9,865 reviews
No Upfront Payment Required, Pay Only If You Hire.
Home Blog Non-Compete Agreement Cost

Jump to Section

What does a non-compete agreement cost? Employers who want to protect their business from former employees may ask this question. Let’s explore non-compete agreement costs and review general information about non-compete agreements and how they work.

How Much Does a Non-Compete Agreement Cost?

A non-compete agreement is a type of restrictive covenant that is executed between an employer and an employee. It is a legally binding agreement. The employee agrees that they will not compete against the employer when and if their employment is terminated.

When employees begin working for a company, they are trained to do their job using company policies, knowledge, skills, and sometimes intellectual property. A non-compete agreement keeps all this information private. It prevents the employee from starting their own business to compete against their former employer.

The legality and enforceability of non-compete agreements vary by state. Suppose a company is considering implementing a non-compete agreement into its hiring practices. It is recommended that they consult with a knowledgeable attorney.

An attorney who has experience with non-compete agreements will know if the agreement is permissible in the jurisdiction and how to draft a comprehensive non-compete agreement that protects the company.

According to ContractsCounsel’s marketplace data, the average cost of a project involving a non-compete agreement is $542.59.

See Non-Compete Agreement Pricing by State

What’s Typically Included in a Non-Compete Agreement

Non-compete agreements will vary based on the company's industry, business, and needs. Even though they can be customized to serve the needs of a specific business, non-compete agreements should contain the following information:

  • Date. Include the date the agreement becomes effective. For example, this is the date the employee is hired. In some cases, employees must sign a non-compete before accepting a promotion.
  • Duration. Non-compete agreements must specify how long the departing employee must wait before finding employment in the same industry. Typically, the duration will be between two and five years because the duration must be reasonable.
  • Geographic Location. The non-compete agreement will usually specify an area in which the former employee cannot seek employment in the same industry. The area must be reasonable, and if the employee moves outside this area, they can work in the same industry.
  • Specific Competitors. Former employees may list specific competitors that an employee cannot work with within some industries. This is more common with large well-known franchises.

Are Non-Compete Agreements Enforceable?

The enforceability of non-compete agreements varies by state. For example, California, Oklahoma, and North Dakota specifically prohibit non-compete agreements. Other states will look at non-compete agreements on a case-by-case basis to determine if the contract is enforceable.

Courts will only uphold a non-compete agreement if it is reasonable. The following factors will determine reasonability:

  • The employer has a legitimate interest in protecting their business
  • The specified region is a reasonable size
  • The agreement isn’t so restrictive that employees will have trouble finding work
  • The duration of the agreement is reasonable
  • Whether the type of work or scope of the agreement is overly broad

Whether a non-compete agreement is held up in court depends on how the agreement is written. For this reason, it is vital to work with an attorney who is familiar with non-compete agreements and state laws surrounding these agreements.

A knowledgeable attorney can help draft a non-compete agreement that is reasonable, specific, and will protect your company from former employees acting as competitors.

Meet some lawyers on our platform

Chris D.

9 projects on CC
View Profile

James H.

10 projects on CC
View Profile

Benjamin W.

74 projects on CC
View Profile

Ryenne S.

557 projects on CC
View Profile

Examples of Non-Compete Agreement Projects

Non-Compete Agreement Drafting Service

Non-compete agreements can be vital documents for any company that wants to protect its trade secrets, knowledge, and business.

Non-compete agreements are often scrutinized in court, and any mistake in the agreement can have it thrown out and deemed unenforceable. So when an experienced lawyer drafts your non-compete agreement, you have peace of mind knowing that the contract will protect your company.

If you hire a lawyer to draft your contract, you will meet to discuss your business needs and what you need to protect. The lawyer will then draft a custom-tailored non-compete agreement that you can use with your employees.

Non-Compete Agreement Review Service

Non-compete agreement templates can be found online and often contain standard boilerplate language. However, if you choose to use a standard template, your non-compete agreement may not be enforceable based on your state and jurisdiction.

If you choose to use a template or draft your own non-compete agreement, you should hire a lawyer to review the document before using it. A local lawyer will know all the state laws that a contract must adhere to and can help you customize your non-compete agreement to best suit your business.

Drafting Non-Compete Agreement Costs

Hiring a lawyer to draft a non-compete agreement will come with costs. The lawyer will charge for any time spent working on the agreement, including consultations and revisions.

ContractsCounsel’s marketplace data shows the average non-compete agreement drafting costs are $695.62 across all states and industries.

Non-Compete Agreement Review Costs

A lawyer will also charge for review services, although typically less than drafting services. The lawyer will use their time and legal expertise to ensure your non-compete agreement is reasonable and will hold up in court.

According to ContractsCounsel’s marketplace data, the average non-compete agreement review costs are $406.56 across all states and industries.

How Do Lawyers Charge for Non-Compete Agreements?

Hourly Rates for Non-Compete Agreements

When using an hourly rate fee agreement, the lawyer will charge the client a set hourly rate for each hour of work spent on the client’s case or project. Lawyers like this fee structure because it ensures payment for all time spent on a case. Clients will not know the extent of their legal fees until after the project is complete.

The marketplace data for ContractsCounsel shows the average hourly rate for a non-compete agreement lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for Non-Compete Agreements

When using a flat fee rate structure, the lawyer will assess the project then provide the client with a flat fee quote to complete the job. Clients like this fee arrangement because they know exactly what they need to budget for legal fees.

A flat fee rate is typically paid upfront, benefiting the lawyer. The downside, however, is that if a project takes longer than expected, the lawyer will not be compensated for additional time.

ContractsCounsel's marketplace data shows that the average flat fee rate for a non-compete agreement costs $542.59.

Get Help with a Non-Compete Agreement Project

Do you need help with a non-compete agreement? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

Need help with a Noncompete Agreement?

Create a free project posting

Meet some of our Lawyers

Mathew K. on ContractsCounsel
View Mathew
5.0 (2)
Member Since:
February 1, 2022

Mathew K.

Founding Attorney
Free Consultation
9 Yrs Experience
Licensed in IL
DePaul University College of Law

Kerbis' practice includes business and real estate transactions, estate planning, and limited scope litigation consulting. Mathew has negotiated deals involving multinational corporate franchises and has collectively helped hundreds of clients with their transactional, civil litigation, and appellate legal needs. Throughout his tenure as an American Bar Association leader, Mathew has advocated for legal education reform, interviewed ABA Presidents and State Appellate and Supreme Court Justices, and lobbied Congress on behalf of the legal profession. As a law student, Mathew served as an extern for the Honorable Justice Robert E. Gordon of the Illinois Appellate Court, First District.

Morgan S. on ContractsCounsel
View Morgan
5.0 (7)
Member Since:
July 31, 2023

Morgan S.

Free Consultation
Austin, Texas
3 Yrs Experience
Licensed in TX, WV
University of Pittsburgh Law School

Corporate Attorney that represents startups, businesses, investors, VC/PE doing business throughout the country. Representing in a range of matters from formation to regulatory compliance to financings to exit. Have a practice that represents both domestic and foreign startups, businesses, and entrepreneurs. Along with VC, Private Equity, and investors.

Mark P. on ContractsCounsel
View Mark
5.0 (8)
Member Since:
July 21, 2023

Mark P.

Free Consultation
Kansas City, MO
9 Yrs Experience
Licensed in KS, MO, NE, TX
University of Missouri - Kansas City I represent a diverse mix in a vast array of specialties, including litigation, contracts, compliance, business and financial strategies, and emerging industries. Credit for this foundation of strength goes to those who taught me. Skilled professors and professionals fostered my powerful educational and professional background. Prior to law school, I earned dual Bachelor’s degrees in Business Administration & Accounting from Peru State College. I received a Master of Business Administration degree from Chadron State College. My ambitions did not stop there. While working full time as a Senior Accountant for the University of Missouri, Columbia, I achieved the lifelong goal of becoming a licensed Certified Public Accountant (CPA). Mizzo provided excellent opportunities and amazing experiences. Managing over $50M in government and private research funding was a gift. As a high ranking professional in the Department of Research, I was given priceless insight into the greatest scientific, journalistic, medical, and legal minds in the world. My passion for successful growth did not, and has not stopped. I graduated summa cum laude (top 3%) with a Doctorate in Law, emphasizing in urban, land use and environmental/toxic tort law from the University of Missouri, Kansas City. This success lead to invaluable experiences of serving as Hon. Brian C. Wimes' judicial clerk for the U.S. District Court for the W. D. of Missouri, as a staff editor/writer for UMKC Law Review, and as a litigation and transactional attorney with Lathrop GPM (fka Lathrop & Gage). My professional and personal network is expansive, with established relationships throughout the U.S. and overseas. Although I engage in legal practice all over the country, I maintain law licenses in Missouri, Kansas, and Nebraska. Federally, I hold licenses in the W.D. and E.D. of Missouri and the District of Nebraska. To offer extra value, efficiency, and options, I maintain a CPA license and am obtaining a real-estate brokerage license.

Rhea J. on ContractsCounsel
View Rhea
Member Since:
July 21, 2023

Rhea J.

Attorney at Law
Free Consultation
Evansville, IN
10 Yrs Experience
Licensed in IN
University of Illinois at Urbana-Champaign

I am a graduate from Wittenberg University and University of Illinois at Urbana-Champaign. I have been admitted to the Indiana bar since 2013. I have collaborated on several writing projects for the Indiana State Bar.

Karen H. on ContractsCounsel
View Karen
Member Since:
July 23, 2023

Karen H.

Former Division General Counsel
Free Consultation
43 Yrs Experience
Licensed in IL
Loyola University Chicago School of Law

During my tenure as VP & Division General Counsel of PepsiCo Inc. in Chicago, I built upon my diverse career overseeing legal matters for both the domestic and international businesses of PepsiCo and The Quaker Oats Co. My extensive practice areas included M&A, contracts, competition, NDAs, regulatory compliance, consumer product & protection, environmental, patents, and advertising regulations. Throughout my professional journey, I navigated legal complexities associated with an eclectic range of products, spanning juices, sports drinks, cereals, snacks, needlepoint kits, canned goods, eyeglasses, men's suits, car seats and toys. For further information, see my LinkedIn:

John W. on ContractsCounsel
View John
Member Since:
July 23, 2023

John W.

Strategic Business Partner
Free Consultation
Brookline, MA
38 Yrs Experience
Licensed in DC, MD, VA
Georgetown University Law Center

I am a business lawyer with 30+ years of experience, with a specialization in the life sciences industry. I have been general counsel at 5 different companies - both large and growing, as well as small and emerging. I have built legal teams and have extensive experience with Boards of Directors.

Find the best lawyer for your project

Browse Lawyers Now

Need help with a Noncompete Agreement?

Create a free project posting
See All Business Lawyers
Learn About Contracts
See More Contracts
other helpful articles

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need help with a Noncompete Agreement?

Create a free project posting

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city