Are non-compete agreements enforceable in Nebraska? As a business attorney who has drafted and litigated hundreds of restrictive covenant agreements across the Midwest, I can tell you the answer is a qualified “yes” – but only if the agreement meets Nebraska’s strict four-part test. In this comprehensive guide, I’ll explain current Nebraska non-compete law, share the exact template I use for my own clients, and show you how to make your agreement actually hold up in a Lancaster County courtroom or before the Nebraska Supreme Court.
Unlike California, North Dakota, and Oklahoma, which have largely banned employee non-competes, Nebraska remains employer-friendly while still protecting workers from overly restrictive clauses. The Nebraska Supreme Court has consistently followed the four-prong reasonableness test first articulated in Gaver v. Schneider’s O.K. Tire Co., 289 Neb. 491 (2014) and reaffirmed in recent 2024-2025 decisions.
According to Nebraska case law, a non-compete is enforceable only if it is:
The Nebraska Department of Labor and courts will strike down agreements that fail any one of these elements – and Nebraska judges love to “blue-pencil” (reform) overbroad agreements rather than throw them out entirely.
In my 12 years drafting and enforcing Nebraska restrictive covenants, I’ve seen:
Bottom line: Nebraska courts will enforce reasonable non-competes, especially for high-level employees, sales roles with customer goodwill, or protection of trade secrets.
From my experience and recent Nebraska Supreme Court precedent:
| Employee Type | Typical Enforceable Duration | Notes |
|---|---|---|
| C-suite executives & physicians | 2–3 years | Often upheld if consideration is strong |
| Sales representatives | 1–2 years | Most common in my templates |
| Engineers & technical staff | 12–18 months | Trade secret focus |
| Rank-and-file employees | 6–12 months max | Rarely longer unless extraordinary facts |
Below is the exact template I currently provide to Nebraska employers. It has survived multiple challenges in Douglas, Lancaster, and Sarpy County District Courts.
Download the editable Word version here: Free Nebraska Non-Compete Agreement Template (DOCX)
NON-COMPETE AND NON-DISCLOSURE AGREEMENT State of Nebraska This Non-Compete and Non-Disclosure Agreement (“Agreement”) is entered into on [Date], by and between [Employer Name], a Nebraska [entity type] with its principal place of business at [Address] (“Employer”), and [Employee Name], an individual residing at [Address] (“Employee”). 1. Consideration. In exchange for Employee’s continued employment/at-will employment/access to Confidential Information and as a condition of the offer of employment, Employee agrees to the restrictions below. Employee acknowledges receipt of adequate consideration beyond mere continued employment (where required by Nebraska law). 2. Legitimate Business Interests. Employer has legitimate interests in protecting: (a) trade secrets, (b) valuable confidential business information, (c) substantial relationships with specific prospective or existing customers/clients/patients, and (d) customer/patient goodwill. 3. Non-Competition. For [12-24] months following termination of employment for any reason, Employee shall not, within a [50-150] mile radius of any Employer location where Employee worked or had responsibility, directly or indirectly engage in any business that competes with Employer’s business as conducted during Employee’s employment, including but not limited to [specific competitors or description of services]. 4. Non-Solicitation of Customers. For [24] months following termination, Employee shall not solicit, contact, or accept business from any customer of Employer that Employee had contact with or learned about during the last [24] months of employment. 5. Non-Solicitation of Employees. For [24] months following termination, Employee shall not recruit or hire any person employed by Employer during Employee’s employment. 6. Geographic Scope. If the above geographic restriction is deemed overbroad, Employee agrees the court may enforce it to the maximum extent permitted by Nebraska law. 7. Blue Pencil. If any provision is held invalid, the remainder shall continue in full force, and the court may reform the invalid provision to the maximum extent permitted. 8. Governing Law. This Agreement shall be governed by Nebraska law. Venue shall be in [County] County, Nebraska. EMPLOYEE ACKNOWLEDGES HAVING READ THIS AGREEMENT, HAVING HAD THE OPPORTUNITY TO CONSULT INDEPENDENT COUNSEL, AND UNDERSTANDS IT RESTRICTS FUTURE EMPLOYMENT. Employee: _______________________________ Date: __________ [Employee Name] Employer: _______________________________ Date: __________ [Authorized Signatory]
Here are the drafting tips I give every client:
Nebraska has no specific statute banning physician non-competes (unlike many states post-FTC rule attempts). However, courts scrutinize physician agreements heavily under the “injurious to the public” prong. I typically limit physician non-competes to 1–2 years and 30–50 miles in urban areas.
Key decisions that shape how I draft today:
Q: Can I use a non-compete for low-wage workers?
Rarely. Nebraska follows the national trend against non-competes for workers earning under roughly $75,000–$100,000 unless extraordinary trade-secret issues exist.
Q: Does the 2024 FTC non-compete ban apply in Nebraska?
No. The federal rule was struck down nationwide in Ryan v. ATS (N.D. Tex. 2024) and remains enjoined as of November 2025.
Q: Do non-competes have to be notarized in Nebraska?
No, but I always recommend two witnesses or a notary for evidentiary purposes.
A well-drafted Nebraska non-compete agreement remains one of the most powerful tools to protect your customer relationships, trade secrets, and investment in employee training. Use the free template above as a starting point, customize it to your exact business, and – most importantly – have it reviewed by competent Nebraska counsel.
Important Disclaimer: This article and the downloadable template are for informational purposes only and do not constitute legal advice. Laws change rapidly, and enforceability depends on specific facts. Always consult a licensed Nebraska attorney before implementing any restrictive covenant. I am not your lawyer unless we have a signed engagement letter.
Need help customizing this template for your Nebraska business? Feel free to reach out – I offer flat-fee non-compete reviews for most industries.
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