Over the past 10 years, the use of non-compete agreements has skyrocketed in Texas. Previously, such agreements were only for senior executives or for those who had access to the company`s true business secrets. Not anymore. As a lawyer who often handles contract disputes related to Texas competition contracts, one of the questions I am asked more than anyone (by employers and employees) is: “Is my Texan competition agreement applicable?” While Texas courts generally oppose non-competition obligations, they become a non-compete clause if applied against a valid consideration, includes appropriate geographic, temporal and activity restrictions, and protects the legitimate business interests of the employer. Even in cases where the employer has not received sufficient consideration under Texas law, the worker may withdraw from the non-competition agreement. For example, if the employer offered a lump sum in cash in return, it would not be considered an adequate consideration in Texas and the agreement is unlikely to apply. To be applicable, as mentioned above, a non-compete clause in Texas must also be reasonable in the way it limits a former employee. The short answer is that courts increasingly consider non-competitive agreements applicable after the first requirement, but take a closer look at the extent of the restrictions imposed by a federal state under the second requirement – they reform when the restrictions of a federal state are too broad. In that result, the Texas Supreme Court ruled that “the Texas Constitution protects contractual freedom.” But the court also reaffirmed the legal restrictions that are not imposed on competition. The Tribunal found that “inappropriate restrictions” could “impede legitimate competition.” Second, a non-compete clause must contain appropriate restrictions outlining the geographic boundaries of the federal state, the restrictive period and the description of the worker`s activity that must be restricted. Many employers require workers to sign non-competitive agreements as a condition of employment. These agreements generally require a worker to agree not to compete with the employer for a specified period of time or to work for a competitor within a given geographic location.
These provisions are often very broad. In considering whether a non-compete agreement is applicable, the court will no doubt consider: the long answer is that the Texas confederation, in order not to compete with the law, remains a complex, dark and ever-changing area of the law – an area that has a potentially dangerous impact on an employee`s livelihood. No other area of Texan labour law deprives a worker of his or her financial capacity to support his or her family, as a non-compete clause does. Even workers, able to obtain strong job offers, face the prospect of costly litigation initiated by a former employer – perhaps accompanied by a prejudicial court order prohibiting the worker from working until the case is resolved. For example, authorization work is generally not an enforceable agreement, but courts have found that employers who give your employees access to proprietary information are sufficiently taken into account for the non-competition clause to apply in Texas. While exiting a non-compete agreement in Texas can be complicated, there are many strategies that employees can use to show that a non-compete agreement is not applicable. A non-compete agreement is a certain type of restrictive agreement that is a legal clause in an employment contract or employment contract that prevents a worker from doing anything. “I found a better job that earns more money to take better care of my family, and now I`m being sued for breaking a non-compete clause.” Maybe you didn`t notice the non-compete regime at the end of your employment contract or you didn`t rework much on non-compete bans.