How to Honor Non-Compete and Non-Solicit Obligations

Step-by-step guide to comply with restrictive covenants when leaving your business or employment role.

  1. Map your exact restrictions. Pull your employment agreement, partnership docs, or sale agreements and highlight every restriction with start/end dates. Non-competes typically run 6-24 months; non-solicits often extend 12-36 months. Mark geographic boundaries, industry definitions, and customer lists covered. Create a calendar with restriction expiration dates.
  2. Document your compliance plan. Write down specific actions you'll take to avoid violations. If you can't contact former customers for 18 months, list their names and commit to no outreach. If you can't compete in a 50-mile radius, map that area and note excluded activities. Save this document—it's evidence of good faith compliance.
  3. Set up information barriers. Separate personal contact lists from business databases before you leave. Use different email addresses and phone numbers for new ventures. Don't access old customer files, pricing sheets, or strategic documents after your departure date. Install this separation before you need it.
  4. Handle inbound contact carefully. When former customers or employees contact you directly, document the interaction and refer them back to your old firm if required by your agreements. Don't initiate contact, but responding to unsolicited outreach often falls outside non-solicit definitions. Check your specific language.
  5. Monitor your new activities. Review every new business decision against your restrictions before acting. Hiring from your old firm, serving similar customers, or offering competing services can trigger violations even without direct solicitation. When in doubt, wait until restrictions expire rather than test boundaries.
  6. Keep detailed records. Save all compliance documentation, restriction calendars, and interaction logs for at least 12 months after restrictions expire. If challenged, your paper trail proves you took obligations seriously. Include dates, names, and specific actions taken to avoid violations.