Updated February 17, 2024
A non-compete release is a legal document that removes restrictions on an individual mentioned in a previously signed non-compete agreement.
This is common for past employees or a previous business owner who signed a non-compete as part of a wide-ranging agreement. A release often involves payment from the individual being released.
How to Get a Release (4 steps) |
1. Check Applicable Laws
In recent years, many states have enacted stricter non-compete laws. Many employers have had difficulty keeping up with the changes, and there is a chance a non-compete covenant was not written in accordance with state laws.
Prohibited States – California, North Dakota, Oklahoma, and Washington D.C.
In the 47 states where non-competes are legal, there must be a specific time period and geographical area attributed to the restraint. If not, the non-compete can be determined to be unenforceable.
2. Request the Release
Asking for a release is no easy task. It’s best to either offer money or other valuable consideration in exchange to be let out of the restraint. It is recommended to write an e-mail in accordance with the following sample letter:
Letter Requesting Release from a Non-Compete
Dear [NAME],
As you may know, I signed a previous agreement that restricts my ability to work in my skilled profession. At the time of signing, I did not understand the undue hardship this would put on me and my ability to make a living.
I am writing this letter and desperately requesting a release from this non-compete restraint. I am willing to offer payment or other valuable consideration in exchange for this request.
Please contact me at any time to further discuss this matter at [TELEPHONE] or [E-MAIL].
Sincerely,
[YOUR NAME]
4. Sign the Release Form
Write the terms of the release in a legal document and send it for signature. Immediately after the parties sign, the restrained party will be released from the non-compete.
Remember that a non-compete release does not release the recipient from other contractual obligations post-termination. This may include withholding confidential information (trade secrets), non-solicitation, non-defamation, and other terms to protect the previous employer.
Sample
Download: PDF, MS Word, OpenDocument
RELEASE OF NON-COMPETE AGREEMENT
I. THE PARTIES. This Release of Non-Compete Agreement (“Release”) made this [DATE] (“Effective Date”) is by and between:
Releasor: [RELEASOR NAME], with a mailing address of [RELEASOR ADDRESS] (“Releasor”), and
Releasee: [RELEASEE NAME], with a mailing address of [RELEASEE ADDRESS] (“Releasee”).
The Releasee and the Releasor are each referred to herein as a “Party” and collectively as the “Parties.”
II. PRIOR AGREEMENT. This Release is in connection with a prior agreement made on [DATE] between the Parties that contains a non-compete covenant held by the Releasor and that the Releasee is bound (“Non-Compete”).
III. THE EXCHANGE. This Release is being offered to the Releasee in exchange for: (check one)
☐ – No payment.
☐ – Payment of $[#]
☐ – Other. [OTHER]
IV. THE RELEASE. This Release is strictly to hold the Releasee harmless and free of liability against any claims related to the Non-Compete mentioned in the prior agreement. Beginning on the Effective Date, the Releasee shall be free of any such claims.
V. NON-WAIVABLE TERMS. This Release does not waive any other obligations of the Releasee in the prior agreement, including but not limited to, confidentiality, trade secrets, non-disparagement, non-solicitation, and any other terms meant to protect the interests of the Releasor.
Releasor Signature: __________________________ Date: _____________
Print Name: __________________________
Releasee Signature: __________________________ Date: _____________
Print Name: __________________________