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 can receive compensation for the agreement.
When are Covenants not to Compete Unenforceable?
Whether or not a judge will conclude that the covenant is enforceable can be challenging to know beforehand. Even though the interests of an employer are significant, 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. Some provisions that courts have considered to be unreasonable include terms that last for an unusually long period of time or that cover a geographic around Odessa that is unreasonably broad.
Covenants must also be limited to restricting dealings with those competitors that are reasonably related to the employer's industry. Lastly, the covenant not to compete must have a valid business purpose which is behind the employer's motivation for requiring the agreement.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Since covenants could restrict your rights, you may wish to hire an Odessa, Texas lawyer to review any documents. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one regarding whether they can accept a different job.
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