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Subcontractor Non Solicitation Agreement Template for United States

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Key Requirements PROMPT example:

Subcontractor Non Solicitation Agreement

"I need a Subcontractor Non Solicitation Agreement for my IT consulting company based in Texas, specifically to prevent our software development subcontractors from poaching our employees or other subcontractors for 18 months after project completion in January 2025."

Document background
The Subcontractor Non-Solicitation Agreement is essential in protecting business relationships and maintaining workforce stability in contracting arrangements. This document is particularly relevant in the United States, where it must be carefully crafted to comply with varying state laws on restrictive covenants. The agreement typically includes specific provisions about who cannot be solicited, the duration of the restriction, geographic limitations, and consequences of violation. It's crucial to balance legitimate business protections with reasonable restrictions that courts will enforce.
Suggested Sections

1. Parties: Identifies all parties to the agreement, including full legal names and addresses

2. Background/Recitals: Explains the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Non-Solicitation: Detailed description of prohibited solicitation activities

5. Duration: Specifies the time period for which the agreement remains in effect

6. Geographic Scope: Defines the geographical boundaries where the agreement applies

7. Consideration: States the value exchanged for the agreement

8. Enforcement: Details remedies and procedures for breach of agreement

Optional Sections

1. Confidentiality Provisions: Additional protections for confidential information when sharing sensitive business information

2. Assignment Rights: Terms for transferring agreement rights when transfer of rights might be needed

3. Dispute Resolution: Specific procedures for resolving disputes when parties want to specify alternative dispute resolution

4. Severability: Provisions for maintaining validity if parts are struck down, particularly important when agreement covers multiple jurisdictions

Suggested Schedules

1. Schedule A - Protected Relationships: List of specific clients, employees, or contractors protected by the agreement

2. Schedule B - Territorial Scope: Detailed description of geographic boundaries

3. Schedule C - Excluded Parties: List of entities or individuals excluded from the agreement

4. Appendix 1 - Defined Terms: Extended definitions of key terms and concepts

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses























Industries

Federal Antitrust Laws: Sherman Antitrust Act and Federal Trade Commission Act must be considered to ensure the agreement doesn't violate federal competition laws or create unreasonable restraints on trade

Defense of Trade Secrets Act: Federal law that provides protection for trade secrets and must be considered when drafting provisions related to confidential information

State-Specific Non-Solicitation Laws: Various state laws governing non-solicitation agreements, with significant variations between jurisdictions (e.g., California's restrictive approach vs. other states)

State Trade Secrets Laws: State-specific laws protecting trade secrets that may complement or differ from federal protections

Reasonableness Doctrine: Legal principle requiring that non-solicitation agreements must be reasonable in terms of scope, duration, and geographic limitations

Legitimate Business Interest Requirement: Legal requirement that the agreement must protect a legitimate business interest rather than simply restrict competition

National Labor Relations Act: Federal law protecting workers' rights that must be considered when drafting restrictions on employee activities

Independent Contractor Classification: Laws governing the distinction between employees and independent contractors, which may affect the enforceability and terms of the agreement

Consideration Requirements: Legal requirement that the agreement must be supported by adequate consideration to be enforceable

Geographic Scope Limitations: Legal restrictions on the geographic area where non-solicitation provisions can be enforced

Time Duration Limitations: Legal restrictions on the length of time non-solicitation provisions can remain in effect

State Unfair Competition Laws: State-specific laws governing unfair business practices and competition that may affect the agreement's terms and enforcement

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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