Misconceptions Concerning Noncompete Agreements in Texas

March 12, 2014 / By Robert Wood

On the street, there are many misconceptions about noncompete agreements in Texas.  One myth is that, for a noncompete to be enforceable, the employer must have given the employee a cash payment, or a promotion, or some other monetary benefit.  But this is not the law in Texas. 

Usually, what the employer provides to the employee as consideration for the employee’s promise not to compete is confidential information.  Thus, by allowing the employee access to its confidential customer, pricing, and other information, the employer creates the justification for the employee’s return promise not to compete.  Typically, this confidential information is disseminated to the employee in an informal way (usually, the employee simply accesses the information through his normal job duties).

 

Thus, if you are an employee bound by a noncompete agreement, the agreement can be enforceable even though you have not received a new monetary benefit.  Simply performing your routine job duties (which includes accessing your employer’s confidential databases) may be enough to make your noncompete agreement enforceable.

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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