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Non-Compete Release Form

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Non-Compete Release Form

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
  2. Request the Release
  3. Negotiate the Terms
  4. Sign the Release Form

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].



3. Negotiate the Terms

The terms of the release should be negotiated in good faith. The restrained party should always present that, at any time, they can move outside the geographical area the non-compete is bound. Therefore, the holder of the non-compete does not have unlimited leverage.

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.


Download: PDF, MS Word, OpenDocument


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: __________________________