Dallas Texas Non Compete Agreements Attorney. Texas Non-Compete Agreements Overview
In Texas, non-compete agreements are generally disfavored as unlawful restraints on trade. Courts recognize that in our capitalist economic system, workers must be free to compete with each other, work where they wish, etc. However, the law also acknowledges that an employer may have interests that are important enough to warrant restrictions on post-employment competition.
Whether a particular non-compete agreement is enforceable in Texas cannot be known with absolute precision. The law in this area is complex, courts frequently differ with each other, and much depends on preferences of individual judges. However, both the law and experience provide useful guidance.
A non-compete covenant is typically just one provision contained in a larger employment agreement. In Texas, for a non-compete covenant to be enforceable, the following requirements must be met:
•An otherwise enforceable agreement must exist.
•The noncompete covenant must be "ancillary" to the otherwise enforceable agreement at the time the agreement is made.
•The scope of the noncompete covenant must be reasonable in terms of time, geographical area, and scope of activity to be restrained, and must impose restrictions no greater than necessary to protect the employer's goodwill or other business interest.
These requirements are explained in other posts in this Overview section.
Whether a particular non-compete agreement is enforceable in Texas cannot be known with absolute precision. The law in this area is complex, courts frequently differ with each other, and much depends on preferences of individual judges. However, both the law and experience provide useful guidance.
A non-compete covenant is typically just one provision contained in a larger employment agreement. In Texas, for a non-compete covenant to be enforceable, the following requirements must be met:
•An otherwise enforceable agreement must exist.
•The noncompete covenant must be "ancillary" to the otherwise enforceable agreement at the time the agreement is made.
•The scope of the noncompete covenant must be reasonable in terms of time, geographical area, and scope of activity to be restrained, and must impose restrictions no greater than necessary to protect the employer's goodwill or other business interest.
These requirements are explained in other posts in this Overview section.
