Non Competition Agreement Texas

Do you have any further questions about non-compete obligations? As an attorney who frequently handles contractual disputes involving non-compete obligations in Texas, one of the questions I get asked more than any other (by employers and employees) is, “Is my Texas Non-Competition Code enforceable?” This series of articles will examine several countries in which I have negotiated or analysed non-compete obligations. The first article is about Texas – my home state. Texas is interesting in that it believes in free trade (the Texas Covenant Not to Compete Act literally prohibits non-competition), but it also believes in business (so the law provides a huge safe haven for such a deal). There are other reasons why a non-compete obligation may not be enforceable – allowing an employee to avoid its terms – even if it is reasonable and there is reasonable consideration. Here are some examples of why an employee in Texas may opt out of a non-compete competition code: The long answer is that Texas non-compete law remains a complex, opaque, and ever-changing area of law — one with potentially dangerous implications for an employee`s livelihood. No other area of Texas labor law offers the ability to deprive an employee of his or her financial means to support his or her family, as does a non-compete obligation. Even employees who are able to secure solid job offers face the prospect of costly litigation initiated by a former employer – possibly accompanied by a prejudicial court order banning the employee until the matter is resolved. Texas appreciates smoked chest, live music, and employee mobility. Any non-compete obligation that seeks to unduly restrict the free market will not be enforced or modified by a court to limit more than is appropriate to protect an employer`s commercial interests. Texas courts have recognized that excessively broad restrictions on worker mobility harm the free market. Therefore, not all non-compete obligations (i.e., restrictive agreements) are enforceable in Texas. To be valid under Texas law, a non-compete obligation must be “incidental to an otherwise enforceable agreement.” I have spent much of my 27-year legal career drafting and analyzing non-compete rules in Texas. Since 2007, I`ve written hundreds of articles about the Texas non-compete clause on my blog TexasNonCompeteLaw.com.

If you have any questions about a non-compete agreement in Texas, please feel free to contact me. I am pleased to review your agreement and develop a strategy to pursue the result you want. As Texas seeks to encourage business and promote healthy business competition, it also allows employers to require workers to sign non-compete agreements that protect their business interests. Instead of invalidating an obligation not to compete with broad geographical, temporal or scope constraints, the court generally needs to reform the agreement and revise the provisions according to those appropriate to the circumstances. [35] However, as long as the employer does not indicate which reform of the Covenant would be reasonable and necessary, if any, to protect its goodwill or other commercial interests, the Covenant cannot be reformed. [36] CAVEAT: If a court reviews the agreement to make it appropriate, an employer is limited to injunctive relief (i.e., no damages for breach of the agreement). [37] What does this mean in practice? Based on Texas law and jurisdiction, a non-compete obligation must have the following elements to be enforceable: We have supported many employees who are bound by non-compete obligations. We know the law of these treaties. We also have extensive practical experience inside and outside the courtroom.

Because we also represent companies, we know how employers tend to view violations of these agreements. If you are a party to a non-compete agreement or have a legal issue related to a non-compete obligation in Texas, contact us today. For example, all-you-can employment is generally not a binding agreement, but courts have concluded that employers who give employees access to proprietary information are sufficiently in return to make the non-compete clause enforceable in Texas. .