Three years ago, every offer letter we sent had a two-year non-compete stapled to it. I pulled it out of our template in 2024 and haven't looked back. The clause was doing nothing useful and quietly costing us candidates.
Nothing I could measure. In seven years, we've had two employees leave for a competitor. Neither time did I call an attorney. Once, because the person was junior and the risk was rounding-error. The second time, because the client relationship belonged to us, not to her, and she knew it. The clause sat in a PDF in a shared drive. It wasn't protecting anything.
What it was doing: scaring off two senior candidates I wanted. Both asked, politely, whether the non-compete would follow them if we didn't work out. One took a job elsewhere. The regulatory picture on non-competes has also gotten messier state by state, and I'd rather not fight that battle for a document that wasn't earning its keep. Talk to your attorney about your state — this is not legal advice, it's what I decided for our shop.
Two documents, both narrower and both enforceable in ways a blanket non-compete usually isn't.
Both are shorter than the old non-compete. Both are things I'd actually enforce, which is the only test that matters. A clause you'd never take to court is a clause that isn't protecting you — it's decorating the offer letter.
I hire adults. When someone leaves us, I assume they're going to keep working in the field they've built a career in, because of course they are. Trying to lock that down with a two-year cage was never going to work, and honestly, it sent the wrong signal on day one. The offer letter is the first real document a new hire reads about how we treat people. If it opens with "and here's what you can't do for 24 months after we part ways," I've already told them something I didn't mean to say.
The new version says: here's what's ours, here's the line, otherwise good luck. That's the deal I actually want.
If you're cleaning up your offer letter template and the non-compete section is giving you pause, send us a note — this is exactly the kind of small-shop paperwork tune-up we like helping with.
— Amanda @ SBATC