Are Non-Competes Enforceable in Texas?
March 17, 2023
In Texas, non-compete agreements are often established to prevent a former or current employee from competing with an employer for a particular period after their employment terminates. However, the enforceability and validity of a non-compete agreement often vary based on the jurisdiction. Depending on the surrounding circumstances, the former employer may need to continue paying their ex-employee a base wage during the duration of the non-compete.
The Parzivand Law Firm, PLLC, provides experienced legal counsel and reliable advocacy to clients in employment law-related matters. Attorney Hessam Parzivand has the resources and knowledge to tell you about whether non-competes are enforceable in Texas as well as what would happen if the agreement is violated. The firm proudly serves clients across Stafford, Sugar Land, and Fort Bend County, Texas.
What Are Non-Compete Agreements?
Non-compete agreements can be described as a legal clause or contract which indicates that a current or former employee is prohibited from competing with the employer or business for a particular period of time following the end of their employment.
While the non-compete agreement remains valid, the employee will be unable to disclose any trade secrets of the business or company learned during employment. Also, the employee must not work for any competitor within the specific market or geographic location.
What’s more, employees, consultants, and contractors are often required to sign a non-compete agreement when taking up employment. Unfortunately, the non-compete agreement can prevent the employee from accepting another job in their field at the end of their employment – until after the duration stated in the clause.
What Does a Non-Compete Agreement Do?
Generally, the content of a non-compete agreement may vary from one business to another. Nonetheless, the non-compete can prevent the employee from doing any of the following when their employment ends:
Starting a business that offers similar services or products.
Working for a competing person or competitor establishment.
Providing competing services or manufacturing competing products.
Recruiting former coworkers to join their new company.
However, it is not that simple for an employer to prevent a current or former worker from competing against them. Hence, there are various rules and laws addressing the enforceability and validity of non-compete agreements – which often vary between different locations.
When Are Non-Compete Agreements Enforceable in Texas?
According to Texas law, non-compete agreements can be enforceable when:
The non-compete provision is a crucial part of an otherwise enforceable agreement.
The non-compete requirement is reasonable in geographic scope, activities, and timeframe being restrained.
There are valid considerations to support the non-compete requirement – such as something of value provided to the employee.
A Texas employment law attorney can analyze whether the non-compete agreement is enforceable and fully explain the consequences of violating the clause.
What Will Happen if You Violate a Non-Compete Agreement?
Additionally, non-compete agreements may be used to protect legitimate business interests such as trade secrets, specialized training, professional information, and company relationships with certain clients and prospects. Once the agreement is signed, it is important that the employee adheres to the terms and provisions of the contract.
Conversely, if you violate a non-compete agreement, your employee may take the following actions against you:
Petition the Texas court for an injunction to stop an inappropriate competitive business activity.
File a legal action or lawsuit seeking financial damages, monetary penalties, or relief.
Also, you may face civil penalties and other ramifications for breaking your non-compete agreement.
If you’re considering signing a non-compete agreement or if you’ve been accused of violating the terms of your agreement, you need to reach out to an experienced employment law attorney immediately. Your attorney can review the surrounding facts of your case, outline a solid strategy to protect your rights, and help determine the best course of action.
Why You Should Work With an Attorney
Many employers often require their employees to sign a non-compete agreement before taking a position. Such a contract can prevent you from starting a similar business or working for competition within a specific period once your employment terminates. Therefore, before signing a non-compete, it is crucial to hire an understanding non-compete agreements attorney to help review the contract and ultimately protect your best interests.
Attorney Hessam Parzivand can assist clients through the complex procedures involved in non-compete agreements. As your legal team, Hessam can help you understand what the non-compete does, when it is enforceable, and the potential risks of violating the agreement. Also, Attorney Hessam Parzivand will carefully review the non-compete agreement before you sign and work meticulously to uphold your legal rights.
Contact The Parzivand Law Firm, PLLC, today to arrange a consultation with a reliable employment law attorney. Attorney Hessam Parzivand has the knowledgeable legal guidance and trusted advocacy you need to make informed decisions. The firm proudly serves clients across Stafford, Sugar Land, and Fort Bend County, Texas.