Can A Noncompete Be Extended If It Is Violated?

February 3, 2017 / By Robert Wood

can a non-compete be extendedMany 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 time an employer discovers a noncompete violation and obtains an injunction to prevent it, the covenant may be almost expired—without the employer getting much if any of its benefit.

Normally, a noncompete will expire at the time stated in the contract. So, if it is a year-long noncompete, the ex-employee can generally begin to compete at the end of a year without fear of employer interference.

However, recent Texas cases provide a possibility for an employer to obtain an equitable extension of a noncompete agreement, if the ex-employee’s violations were “continuous and persistent.”
But the employer must act quickly. Texas courts are hesitant to extend a noncompete agreement if the employer has not diligently asserted its legal and equitable rights.

Contact Us For Help

At our firm, we have substantial experience representing employers in noncompete cases. If you are an employer needing to enforce a noncompete, or an employee accused of violating a restrictive covenant, call us today.

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About the Author

Robert Wood has been a Texas trial lawyer since 1993. During that time, he has represented small, mid-sized, and Fortune 100 companies in business and employment litigation matters all over Texas and the United States. He has also advised and represented hundreds of individuals in employment litigation matters. Read more about Robert Wood