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". Compensation may be paid for employees who sign the covenant, or at times the employment may be conditioned upon such an agreement.
When are Covenants not to Compete Unenforceable?
Whether a given judge will enforce a non-compete agreement is difficult to know in advance. Although the interests of employers are important, courts in Texas also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. 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 River Oaks.
Covenants must also be limited to restricting dealings with those competitors that are rationally related to the employer's industry. Lastly, there must be a legitimate business interest which motivates the employer's mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
You may want to hire a River Oaks, Texas lawyer to review the covenant before signing any agreements that may limit or restrict your rights. The lawyer will then be able to negotiate any modifications to the contract as needed, or they can even draft a new one should it be required by one or both parties. 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.