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How to write a non-compete clause for a consulting engagement

A client asking for a non-compete is protecting a real competitive position, and an overbroad version of that clause, one covering an entire industry or an indefinite period, can quietly block you from ever working in your own field again. Signing one without scrutiny trades a single engagement for a much larger, longer-term cost.

A fair non-compete isn't the absence of any restriction. It's one scoped narrowly enough that it protects the client's real interest without ending your ability to work.

Overbroad terms can quietly block you from your own field

A non-compete written broadly, "any competing business," with no time limit, can functionally end your ability to work in your own field, far beyond what the client's actual competitive concern requires. Recognize the real scope of what you might be agreeing to.

Understand the real competitive concern behind the request

Ask directly what specifically the client is worried about, a handful of named direct competitors, or a broader concern about proprietary information. The real concern shapes what a proportionate clause actually looks like.

In Stelaah, a signed contract's exact terms stay on the record, so a non-compete's real scope is always available to reference rather than relying on memory once the engagement is long over. See how contracts works.

Scope it to the actual, named competitors that matter, not an entire industry

A non-compete naming a small number of specific, genuine competitors is both fair and far more likely to be enforceable than a blanket restriction against an entire industry. Push for specificity over broad category language.

Put a real, reasonable time limit on the restriction

An indefinite non-compete is both disproportionate and, in most jurisdictions, unenforceable. Set a specific, reasonable duration, months rather than years in most consulting contexts, tied to how quickly the competitive concern actually fades.

Protect your general knowledge and skills, not just this engagement's specifics

A non-compete should restrict working with named competitors on similar work, not your general professional skills and knowledge built over a career. Make sure the clause doesn't accidentally reach further than the specific competitive concern it's meant to address.

A simple checklist

If you do nothing else, do these five things:

  • Understand the real, specific competitive concern behind the request.
  • Push for named competitors, not a broad industry restriction.
  • Set a reasonable, defined time limit, not an indefinite one.
  • Protect your general skills and knowledge from being restricted too.
  • Read the real scope closely before signing boilerplate language.

Do that, and a non-compete clause protects the client's genuine interest without quietly ending your ability to work in your own field.

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