Enforcing (Or Fighting) Your Non-Compete Agreement
In Texas, a non-compete agreement does not have the hoops to jump through that one would in New York. Instead, non-compete agreements in Texas must only be (1) part of or supplemental to an otherwise enforceable agreement, and (2) reasonable.
The first portion of this essentially requires the non-compete agreement itself to be part of or related to an employment contract. The second requirement, reasonableness, has been interpreted by the Supreme Court of Texas to be a balancing test between the protections of the non-compete to the employer and the hardship imposed upon the employee.
Because of this, from an employer’s prospective, a non-compete agreement must be drafted carefully. If the agreement is not ancillary to or included within an otherwise enforceable agreement, it will not be upheld. A non-compete agreement on its own, even if offered in exchange for incentives, is improper and Texas law will override it. Additionally, while it might be advantageous to prevent former employees from battling you for future business, the restraint on their ability to work should be limited. Non-compete agreements are not meant to punish an employee for leaving and should instead be drafted only to protect your business from unfair influence.
On the other page, if you signed a non-compete agreement with your employer and now want to leave in favor of another opportunity in conflict with that agreement, you might not be out of luck. Contesting the validity of a non-compete agreement relies on proving that one of the above-mentioned factors about the agreement you signed are lacking. Usually this is shown with unreasonably restraining requirements that limit how or where you can work after leaving.
Waldron & Schneider boasts a team of experienced lawyers well equipped to help you succeed no matter the area of non-compete agreements you fall within. If you are hoping to contest or enforce a non-compete, our team of experienced litigators is prepared to fight for you in the courtroom. If you are instead hoping to include in your employment contracts a non-compete agreement that will protect your company from former employees, our corporate lawyers are experienced with drafting enforceable non-compete agreements that will provide you with reassurance.
Call our office to schedule a meeting with an attorney who can find you the help you need today.
The legal information in this blog entry is not intended to be a substitute for seeking personalized legal advice from an attorney licensed to practice in your jurisdiction. Further, nothing contained in this article is intended to create an attorney-client relationship with any reader. This article and website are made available by Waldron & Schneider for educational purposes only and to give basic information and a general understanding of the law, not to provide specific legal advice. By using this website you understand that there is no attorney client relationship between you and Waldron & Schneider. The article and website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. For more information or questions you can contact us and one of our attorneys will be in touch soon.
Waldron & Schneider wishes everyone a safe and Happy 4th of July. ... See MoreSee Less
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Associate Attorney Collin Bullard writes about the disadvantages of a general partnership in his blog.
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Disadvantages of a General Partnership
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Disadvantages of a General Partnership The Texas Business Organizations Code defines a partnership as “an association of two or more persons to carry on a business for profit.” Whether those indiv...1 CommentComment on Facebook
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Waldron and Schneider wishes Partner Richard Simmons a happy early 50th birthday!!! ... See MoreSee Less
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Congrats, Richard. Make sure to have some fun tomorrow.
HAPPY EARLY BIRTHDAY DAD
Happy Birthday!!🎉🎂
Associate Attorney Collin Bullard writes about the importance of buy sell agreements in his blog.
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The Importance of a Buy/Sell Agreement
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The Importance of a Buy/Sell Agreement Many small business owners understand the importance of creating an LLC or similar entity to protect the individual owners from potential liabilities of the c…1 CommentComment on Facebook
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Congratulations to Emily Simmons (daughter of partner Richard Simmons) who competed in the National American Miss Pageant this weekend! She was the Heart of service Winner!!! 4th runner up overall!! 3rd in Casual wear!!! ... See MoreSee Less
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