Are Noncompetes Enforceable in Texas?
Allen Employee Noncompete Agreement Lawyer Explains Texas Contract Law Disputes
It is not uncommon for employees to drift from one job to the next in search of their ideal position. Similarly, employers want to find and keep key personnel, especially those with knowledge of valuable company trade secrets. This is one reason why employers may require workers to sign an employee noncompete agreement. It helps the company retain valuable staff members and protect trade secrets.
A Texas employment contract attorney can help to ensure that a noncompete agreement is in the best interest of the employee and will not cause undue hardship in the future. Allowing Allen employment lawyer Dan A. Atkerson to review any employment contracts before you sign can help save you from future conflicts.
What are Noncompete Clauses in Employment Agreements?
A noncompete agreement affects both the employee and the employer. For example, an employee could be negatively affected by an overly restrictive noncompete clause when looking for employment in the future. However, a lenient or non-existent agreement could cause hardship on an employer if the employee shares proprietary information with competitors. It is important to find an agreeable balance in non-compete agreements in Texas. This then protects the interests of both parties.
Limitations of a Texas Employee Noncompete Agreement
Texas public policy aims to promote competition among businesses rather than limit it. This means an employee noncompete agreement is enforceable by Texas contract law only if it:
- Contains reasonable limitations regarding to time, geographical area and type of work
- Does not restrict a former employee from operating in an area where the employer has commercial activity
- Is part of an otherwise enforceable agreement, such as a noncompete clause in an employment contract
- Does not constitute unreasonable hardship on the employee’s ability to find gainful employment
The courts will review extra considerations, such as bonuses, increased salary or added benefits, for signing a noncompete agreements. This may then determine whether an employee agreement or noncompete clause is enforceable. Some Texas courts may be more inclined to enforce an employee noncompete agreement if the worker receives extra consideration for signing.
If a former employer is restricting your ability to find gainful employment or accuses you of breaching your employment contract or noncompetition agreement, our employee noncompete agreement lawyer may be able to help. Please call (214)383-3606.