What Is A Covenant Not To Compete In Texas?

In Texas, a covenant not to compete generally requires that, upon leaving the company, an employee agrees not to be employed by their employer's competitors. A covenant not to compete may also be called a "non-compete clause". An employee who signs them either does so as a condition to employment or they may receive compensation for the agreement.

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When are Covenants not to Compete Unenforceable?

It is difficult to foresee whether a judge will enforce a given non-compete agreement. Even though the interests of an employer are important, Texas courts value a person's freedom to select the type of employment that they desire. Thus, courts will typically uphold only those covenants not to compete that they conclude to be reasonable. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an excessively long period of time or if they cover an unreasonably large geographic area around Fort Worth.

Covenants not to compete are also required to deal only with competitors who are rationally related to the employer's line of industry. Lastly, the employer needs to have an acceptable business interest which justifies their motives in requiring their employee to sign a covenant not to compete.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

Before you sign any documents that could restrict your rights, you may consider hiring a Fort Worth, Texas attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one about whether they can accept a different job.

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Life in Fort Worth

Fort Worth is concentrated within three main districts: the Cultural District, the Sundance Square District, and the Stockyards Station District.  Some more background information is that Fort Worth is the fifth largest city in Texas, and the sixteenth largest in the U.S.

Naturally, in such a fun and exciting place, there are many things to do.  Popular attractions include Fort Worth Stockyards National Historic District, Stockyards Rodeo, Bass Performance Hall, Modern Art Museum of Fort Worth, the Texas Civil War Museum, Omni Theater, and Trinity Park.

Fort Worth is also home to many well-known law firms such as Haynes and Boone, LLP, as well as many mid-size and small law firms.  Essentially, any resident or corporation's legal needs can be met because there is a variety of firms and lawyers to choose from.  Whether a large case needs to be litigated by a corporate, or an individual needs some small matters taken care of, Fort Worth offers its residents some of the brightest lawyers in the country. 

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