Non-Compete Agreements In Texas

The Texas non-compete clause identifies several areas in which suitability needs to be assessed: time, geographic area, and the scope of activities to be limited. The courts define the exact boundaries in time, geography and activity, and each case must be examined individually. While Texas wants to encourage business and promote healthy competition, it also allows employers to require employees to sign competition bans that protect their business interests. But things are changing. Texas courts have begun to see the non-compete clause in a more favorable light. This has increased the applicability of the non-competition rules. But there are still some obstacles. Under Texas law, examples of proper consideration may be the following: a non-compete clause is a clause in an employment contract that generally prohibits that worker from working for a competing company or from setting up his or her own competing business within a specified time frame and geographic area. Such agreements are intended to protect the employer against unfair competition. For example, the CEO of a company without any non-compete clause could pass on his trade secrets to a competing company offering a higher salary. Heroes: A confidentiality agreement that prohibits employees from using general knowledge, skills, and experience acquired in previous employment in competition with the former employer is similar to a non-compete clause and must meet the requirements of the Texas Covenants to Not Compete Act.

I have spent much of my 27-year legal career drawing 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 Texas contract, please do not hesitate to contact me. I am happy to verify your agreement and develop a strategy to achieve the desired result. Even in situations where the employer has not provided sufficient consideration under Texas law, the worker may be able to get out of the non-compete clause. . . .