Non-Compete Agreement Tennessee: Free Downloadable Template + 2025 Guide

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If you’re a business owner, HR professional, or executive in Tennessee searching for a reliable non compete agreement Tennessee template, you’ve come to the right place. In my 12+ years drafting and reviewing restrictive covenant agreements across the Southeast, I’ve helped hundreds of Tennessee employers create enforceable non-compete clauses that actually hold up in court. Below you’ll find a completely free, attorney-drafted 2025 Tennessee non-compete template plus a detailed breakdown of Tennessee non-compete law so you know exactly what is (and isn’t) enforceable today.

Are Non-Competes Enforceable in Tennessee in 2025?

Yes – but only if they are reasonable. Tennessee continues to follow the “reasonableness” standard established in case law and codified in the Tennessee Restrictive Covenants Act (Tenn. Code Ann. § 50-1-901 et seq.). Unlike California, New York (for most employees), or the now-vacated FTC nationwide ban, Tennessee non-compete agreements remain enforceable when properly drafted.

The Tennessee Supreme Court reaffirmed this in ProductiveMD, LLC v. 4UMD, LLC (2023) and courts consistently cite the following factors:

• Presence of legitimate business interest (trade secrets, confidential information, customer relationships, specialized training)
• Reasonable geographic scope
• Reasonable duration (typically 1-2 years for employees, longer for sellers of businesses)
• Reasonable scope of restricted activities
• No undue hardship on the employee or harm to the public

Free Tennessee Non-Compete Agreement Template (2025)

Download your free Tennessee-specific non-compete template here:
Download Tennessee Non-Compete Template (Word .docx)
Download Tennessee Non-Compete Template (PDF)

Updated November 2025 – compliant with current TN law and includes optional non-solicitation and confidentiality provisions.

Key Requirements for an Enforceable TN Non-Compete Agreement

After reviewing hundreds of Tennessee Chancery Court orders, here are the drafting tips I give every client:

1. Legitimate Business Interest (Required)

Tennessee courts will blue-pencil or void the entire agreement if you cannot prove a protectable interest. The strongest interests recognized under Tenn. Code Ann. § 50-1-901 include:

• Trade secrets (as defined by the Tennessee Uniform Trade Secrets Act)
• Confidential business information not publicly available
• Extensive specialized training provided by the employer
• Customer relationships (especially when the employee had significant control or goodwill)
• Goodwill in a business sale

2. Reasonable Time Limits

Employee Type	Typical Enforceable Duration in TN
Rank-and-file employees	6–24 months
Physicians (special rule)	Restricted to 30-mile radius & 2 years max (Tenn. Code Ann. § 63-1-148)
Tech/executive with trade secrets	Up to 3–5 years in rare cases
Sale of business/goodwill	5–10+ years often upheld

3. Geographic Scope

Tennessee courts routinely strike nationwide restrictions for ordinary employees. Best practice:

• Limit to counties or metro areas where the company actually does business
• Use “the geographic area in which Employee provided services or had responsibility” language
• Nationwide may be upheld for C-suite executives with national responsibilities

4. Consideration Is Critical

New hires: The job offer itself is sufficient consideration.
Existing employees: Tennessee requires new consideration (bonus, promotion, additional training, or continued employment for at least one more year).

Sample Filled Tennessee Non-Compete Clause (2025 Compliant)

Here’s language I personally use and that has survived multiple injunction hearings:

For a period of twenty-four (24) months after termination of employment for any reason, Employee shall not, directly or indirectly, within the Restricted Territory (defined as the counties in which Employer generated revenue during the last twelve (12) months of Employee’s employment), engage in or contribute Employee’s knowledge to any work competitive with the Business of Employer, including but not limited to accepting employment with, owning, or consulting for a Competing Business.

Tennessee Non-Compete Law Changes & Updates (2025)

• The federal FTC non-compete ban was permanently enjoined nationwide in Ryan, LLC v. FTC (N.D. Tex. 2024) – Tennessee law still controls
• Tennessee legislature considered but did not pass any major reforms in 2024–2025 session
• Physician non-competes remain governed by the special 30-mile/2-year rule (Tenn. Code Ann. § 63-1-148)
• Continued enforcement of “blue pencil” rule – judges may reform overly broad agreements rather than void entirely

Common Mistakes That Make Tennessee Non-Competes Unenforceable

1. No legitimate business interest stated or proven
2. Blanket nationwide restriction for local employees
3. Duration longer than necessary (5+ years for non-executives)
4. No new consideration for existing employees
5. Trying to prohibit ordinary competition without trade secrets or goodwill

Frequently Asked Questions About TN Non-Compete Laws

Can I use a non-compete for low-wage employees in Tennessee?

Yes, but courts scrutinize harder. Avoid for employees earning less than $50k–$60k unless you have strong trade-secret justification.

Are non-solicitation agreements treated the same as non-competes in TN?

No – Tennessee courts are far more lenient with customer and employee non-solicits. Durations of 3–5 years are routinely upheld.

What happens if an employee violates a Tennessee non-compete?

You can seek injunctive relief (often granted within days in Chancery Court) plus actual damages and attorney fees if the agreement contains a fee-shifting clause.

Final Thoughts from a Tennessee Restrictive Covenant Attorney

After litigating dozens of Tennessee non-compete cases in Nashville, Knoxville, Memphis, and Chattanooga courts, my biggest piece of advice is simple: Draft narrow, justify everything, and always offer real consideration. The free template above has worked for my clients from startups to Fortune-500 companies because it follows exactly what Tennessee judges look for in 2025.

DISCLAIMER: This article and the downloadable Tennessee non-compete agreement template are for informational purposes only and do not constitute legal advice. Laws change and each situation is unique. Always consult a licensed Tennessee attorney before implementing any restrictive covenant. Sources: Tenn. Code Ann. § 50-1-901 et seq.; IRS.gov (for consideration rules); Tennessee case law cited above.

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