No Industry-Wide Texas Non-Compete Agreements

December 13, 2011 / By Robert Wood

Texas cases dealing with the enforceability of noncompete agreements have long held that “industry-wide” restrictions are overly broad. In a recent case from the Waco Court of Appeals, the court applied that rule to a concrete situation.

The covenant not to compete applied to the “pet supply manufacturing and distribution industry.” The employee contended that this restriction was so broad as to constitute an invalid industry-wide exclusion. The court of appeals disagreed, holding: “[B]ased on the terms of the Agreement, [the employee] would not be precluded from working as a dog handler and groomer, as he did prior to being employed by [the employer]. We conclude that the terms of the Agreement do not amount to an industry-wide employment exclusion and are not unreasonably broad in scope of activity.”

The prohibition against industry-wide exclusions is well known. This case sheds a little light on what would not constitute such a restriction.

RATE THIS POST

1 Star2 Stars3 Stars4 Stars5 Stars
(No Ratings Yet)
Loading...

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