Noncompete Agreements in Texas

“Is my Texas non-compete agreement enforceable?”

breaking-texas-noncompete-agreement

This is a question routinely asked by both employers and employees. Texas law disfavors contracts that restrict employee mobility. Texas courts acknowledge the substantial economic benefit in allowing people to change jobs and industries. But Texas law also recognizes that employers have valid interests–such as protecting their trade secrets and goodwill.

Balancing these interests, Texas law allows for non compete agreements in some circumstances. A properly-worded noncompete – one which is related to a legitimate interest, such as trade secret protection, and which is reasonable in scope – can be enforceable. Even if a particular noncompete is enforceable, though, a court may decide not to force an employee to comply with it. The particular details of each agreement, and each situation, must be evaluated.

If you are party to a noncompete agreement, or have a legal matter involving a noncompete in Texas, contact us today.
  
Browse Texas noncompete and contract dispute articles, written by Attorney Robert Wood:

Can A Noncompete Be Extended If It Is Violated?

February 3, 2017 / By Robert Wood
Noncompete Agreements in Texas

Many noncompete cases are filed after an employer learns that an ex-employee is violating his covenant not to compete. Sometimes, an ex-employee competes for several months before an employer discovers that the ex-employee is doing so. This is especially possible in an age in which much commerce is done via the internet. Thus, by the…

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Geographic Limitations on Texas Non Competes?

October 17, 2016 / By Robert Wood
Articles // Noncompete Agreements in Texas

Worldwide Geographic Restriction of Texas Noncompete Agreements May Be Enforceable Last revised: 10.17.16 In the past, Texas courts have not fully embraced the ability of a non-compete agreement to restrict an employee from working anywhere in the world.  In several cases, Texas courts have held that the proper geographic scope of a noncompete agreement is…

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How do Texas noncompete agreements affect independent contractors?

August 21, 2016 / By Robert Wood
Articles // Noncompete Agreements in Texas

Does the Texas noncompete statute apply to independent contractors as well as employees? Although there is not much case law on this, the answer is almost certainly yes. One case in particular out of the Fort Worth Court of Appeals dealt with a noncompete agreement dispute involving an independent contractor. Neither the company attempting to…

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Possible Tort Claim Not Sufficient Consideration for Noncompete in Texas

March 2, 2016 / By Robert Wood
Articles // Noncompete Agreements in Texas

In recent years, Texas courts have shown support for the employer’s use of non-compete agreements. The courts have done so by finding certain requirements of enforceability implied in non-compete agreements in some circumstances. Despite this trend, in June 2015, the federal appellate court that covers Texas ruled that a duty to keep information confidential cannot…

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Money for a Noncompete in Texas?

February 26, 2016 / By Robert Wood
Articles // Noncompete Agreements in Texas

A Texas appellate court recently addressed the question of whether money is sufficient to support a non-compete agreement.  The court ruled that money was not enough and that the non-compete’s purpose must be to protect a legitimate business interest. The contract at issue was for a company (“Company A”) to provide hospitalist services and to…

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Texas Federal Court Voids Noncompete Agreement

November 25, 2015 / By Robert Wood
Articles // Noncompete Agreements in Texas

As readers of this blog know, noncompete agreements are increasingly enforceable in Texas.  However, even in Texas, not all noncompete agreements comply with the statutory requirements. In a case decided a few months ago, the United States Court of Appeals for the Fifth Circuit, applying Texas law, held that a particular noncompete agreement was unenforceable. …

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