Memorandum of Agreement (MOA) Between Employers Governing Non-compete Obligations

Summary

This template is a memorandum of agreement (MOA) (also known as a memorandum of understanding or MOU) between two companies wherein one of the companies agrees to allow its employee to work for the other company notwithstanding that its employee is bound by a non-competition agreement. This template contains practical guidance, drafting notes, and an optional clause. By entering into this MOA, the first company assures the second company that it will not seek to enforce certain provisions of the employee's non-competition agreement. Use of the MOA eliminates uncertainties as to whether an employee's employment with a second employer violates the non-competition agreement. For more information on non-compete agreements, see Restrictive Covenant Basics, Including Adequate Consideration, Protectable Interests, Geographic and Time Restrictions, and Permissible Scope, Restrictive Covenants: Drafting Common Provisions, Restrictive Covenants: Enforcement Tips, Non-compete Agreements Checklist (Best Drafting Practices for Employers), and Non-compete and Non-solicitation Agreements Checklist (Addressing Suspected Violations). For a model non-compete agreement, customer and employee non-solicitation, and confidentiality agreement, see Non-compete, Customer and Employee Non-solicitation, and Confidentiality Agreement. For a sample non-competition, non-solicitation and confidentiality agreement, see Non-competition, Non-solicitation and Confidentiality Agreement. For information on state laws concerning non-compete agreements, see Non-competes and Trade Secret Protection State Practice Notes Chart. For state law compliant non-compete agreements, see Non-competes and Trade Secret Protection State Expert Forms Chart.