Estimate non-compete agreement drafting costs including attorney fees, state-specific review, and consideration value.
Non-compete agreements (also called restrictive covenants or covenants not to compete) are contracts that restrict an employee or business partner from competing with a company after the relationship ends. These agreements protect trade secrets, client relationships, and competitive advantages.
The cost of creating non-compete agreements typically ranges from $500–$2,000 for attorney drafting, depending on complexity and state-specific requirements. Some states (like California, Oklahoma, and North Dakota) ban or severely restrict non-competes, while others have specific enforceability requirements that must be met.
This calculator helps you estimate the total cost of creating enforceable non-compete agreements, including attorney drafting, state-specific legal review, consideration requirements, and ongoing enforcement costs. Understanding these costs helps businesses protect their competitive interests while staying within legal boundaries.
Legal professionals, business owners, and individuals alike benefit from transparent non-compete agreement cost calculations when evaluating obligations, settlements, or compliance requirements. Bookmark this page and return whenever circumstances change so you always have current figures at your fingertips.
Non-compete agreements are only valuable if they're enforceable. This calculator helps you budget for professional drafting, understand state-specific requirements, and plan for the consideration value needed to support the agreement. Instant recalculation as you change inputs lets you model multiple scenarios quickly, giving you the data foundation needed for well-informed legal and financial decisions.
Total Cost = Attorney Drafting Fee + State Review Fee + Consideration Value + Negotiation Cost
Result: $6,750 total agreement cost
Attorney drafting at $1,200, state-specific review at $300, consideration (signing bonus or continued employment value) of $5,000, and $250 for negotiation = $6,750 total cost per agreement.
Non-compete enforceability varies dramatically. Some states refuse to enforce non-competes entirely, while others apply strict reasonableness tests. Before drafting, research your state's specific requirements for duration limits, geographic restrictions, and required consideration.
Non-solicitation agreements prevent soliciting former clients or employees. Non-disclosure agreements protect trade secrets and confidential information. Garden leave clauses provide paid time off during the restriction period. These alternatives may be more enforceable in restrictive states.
Effective non-competes are narrowly tailored: limit duration to 12–24 months, restrict geography to the relevant market, define prohibited activities specifically, and include a severability clause. Overly broad agreements are more likely to be voided entirely or reformed by courts.
For new employees, present the non-compete with the offer letter. For existing employees, tie signing to meaningful consideration such as a bonus, promotion, equity, or access to proprietary information. Document the consideration clearly in the agreement.
Attorney drafting typically costs $500–$2,000 per agreement. If state-specific legal research is needed, add $200–$500. The consideration value (signing bonus, raise, etc.) varies but may need to be $1,000–$10,000+ to ensure enforceability. Total per-employee cost can be $1,000–$15,000+.
Enforceability varies by state. California, North Dakota, Oklahoma, and Minnesota generally ban non-competes. Most other states enforce them if they're reasonable in duration (typically 1–2 years), geographic scope, and activity restrictions. Courts balance employer and employee interests.
Consideration is what the employee receives in exchange for signing. For new hires, the job itself may be sufficient. For existing employees, courts often require additional consideration such as a pay raise, bonus, promotion, or access to confidential information.
Templates are risky because non-compete enforceability depends heavily on state-specific law, industry norms, and the specific restrictions. A template that's enforceable in one state may be void in another. Professional drafting tailored to your jurisdiction is strongly recommended.
The FTC has proposed regulations to restrict or ban non-compete agreements nationwide. While the rule's status may change, the trend toward limiting non-competes is growing. Businesses should consider alternative protections such as NDAs and non-solicitation agreements.
Enforcement options include seeking a temporary restraining order or injunction, filing a breach of contract lawsuit, claiming damages for lost business, and in some cases, pursuing the new employer for tortious interference. Enforcement costs can run $10,000–$100,000+.