A TermScore is an AI-generated risk rating from 0 to 100 that evaluates the fairness and risk level of any legal document. A score of 86-100 means the contract is highly favorable, while 0-30 indicates dangerous terms you should walk away from.

What types of documents can TermScore analyze?

TermScore analyzes any legal document including freelance contracts, employment agreements, residential leases, NDAs, brand sponsorship deals, SaaS vendor agreements, and rental applications. Upload PDFs, Word documents, or images.

How much does TermScore cost?

TermScore offers a free plan with 3 scores per month. The Team plan is $15/month for 30 scores, and the Professional plan is $50/month for 500 scores with team collaboration features.

Is my document data secure?

Yes. Documents are processed in memory and analysis results are stored encrypted. TermScore never shares your document data with third parties and you can delete your data at any time from your dashboard.

What is the 'Inevitable Disclosure' doctrine?

The inevitable disclosure doctrine is a legal theory used by employers to block an employee from working for a competitor by arguing that the employee's new role is so similar that they will inevitably use the former employer's trade secrets.

Are non-compete agreements enforceable in all states?

No. States like California, Oklahoma, and North Dakota have broad bans on non-compete agreements. Other states, such as Illinois and Massachusetts, have strict requirements regarding salary thresholds and notice periods for enforceability.

Can an employer restrict me from working for competitors if the NDA doesn't mention non-competes?

No, an NDA (Non-Disclosure Agreement) is not a non-compete agreement. An NDA only prohibits the unauthorized disclosure of confidential information. Unless your contract contains a specific non-compete clause, your employer cannot legally prevent you from working for a competitor simply because they are a rival firm.

Understanding the Legal Distinction Between NDAs and Non-Competes

Employees often confuse the two, but they serve entirely different legal functions. An NDA is a defensive tool designed to protect intellectual property, client lists, and trade secrets. A non-compete is a restrictive covenant that limits your right to earn a living in a specific industry or geographic area.

NDA: Focuses on what you know (confidential data).
Non-Compete: Focuses on where you work (the entity).

If your contract only contains an NDA, you are not legally barred from joining a competitor. However, you remain bound by the duty of confidentiality. You cannot take files, client lists, or proprietary software with you to your new role. Action item: Review your employment contract specifically for the words 'non-compete,' 'restrictive covenant,' or 'non-solicitation' to ensure no other clauses exist.

The 'Inevitable Disclosure' Doctrine: The Hidden Risk

Even without a non-compete, some employers attempt to block your move using the 'inevitable disclosure' doctrine. This is a legal theory where an employer argues that your new role is so similar to your old one that you will inevitably use their trade secrets, even if you don't intend to.

Factors courts consider for inevitable disclosure:

Degree of competition: How directly do the two companies compete?
Nature of the role: Is your new position a mirror image of your old one?
Value of the information: Are you privy to high-level trade secrets that provide a competitive advantage?
Employer's actions: Did the employer take reasonable steps to protect the information in the first place?

Key takeaway: The inevitable disclosure doctrine is not recognized in every state. For example, California courts generally reject this doctrine as it conflicts with the state's strong public policy favoring employee mobility.

Action item: If you are moving to a direct competitor, ensure your new job description is distinct from your previous one to minimize the risk of an inevitable disclosure claim.

State-Specific Enforceability and Trends

The legal landscape for restrictive covenants is shifting rapidly. You must know the laws of your specific jurisdiction, as they override company policy.

Jurisdiction	Non-Compete Status	Key Nuance
California	Void	Virtually all non-competes are unenforceable.
New York	Highly Scrutinized	Requires 'legitimate business interest' to be valid.
Texas	Enforceable	Must be 'reasonable' in scope, time, and geography.
Illinois	Regulated	Requires minimum salary thresholds ($75k+).

Action item: Check your state's Department of Labor website to see if there are recent legislative bans on non-competes that might render even existing clauses void.

What to Do If You Are Threatened with Legal Action

If your former employer threatens to sue, do not panic. Most threats are designed to intimidate you into staying or to prevent you from taking clients. Follow these steps:

Audit your documents: Confirm that you have not retained any physical or digital copies of company property.
Review your NDA: Identify exactly what information is defined as 'confidential.'
Consult counsel: If the employer sends a 'cease and desist' letter, do not respond directly. Have an attorney review it.
Document everything: Keep a record of all communications regarding your departure and your new role.

Action item: If you are currently in the process of leaving, perform a 'clean exit'—return all company hardware, delete all company data from personal devices, and provide a written confirmation of these actions to your HR department.

How TermScore Can Help

Navigating the fine print of employment agreements can be overwhelming, especially when your career mobility is at stake. TermScore uses advanced AI to instantly analyze your contracts, identifying hidden restrictive covenants, non-compete clauses, and NDA obligations that could impact your future. Instead of guessing, get a clear, plain-English breakdown of your legal risks before you sign or resign.