Woman signing business contract

Are Non-Compete Agreements Enforceable in Texas?

Before signing any contract, it’s advised that an employee goes through each detail of the agreement carefully. This is a way for the employee to protect themselves and ensure that they understand and are comfortable with the terms and conditions.

While an employee may initially have no problem obliging to the original contract, they may decide to pursue another job opportunity at a future date. This is usually not a problem unless the employee wishes to work at a similar position or a job that is geographically close to their current work and that employee signed a non-compete agreement.

Non-Compete Agreements in Texas

Some general principles can help you understand how non-compete agreements are treated in Texas.

First, non-compete agreements are governed by state law, not federal law. This means that the enforcement of non-compete agreements can vary from state to state. In Texas, non-compete agreements are generally enforced as written if they meet specific requirements.

To be enforceable in Texas, a non-compete agreement must:

  • Be in writing;
  • Be signed by the employee, and,
  • Be reasonable in scope and duration.

If a non-compete agreement does not meet all of these requirements, it may still be enforceable if the employer can show that it has a legitimate business interest to protect. For example, an employer may be able to show that a non-compete agreement is necessary to protect trade secrets or other confidential information.

Repercussions of Violating a Non-Compete Agreement

Violating a non-compete agreement can result in legal action being taken against an employee. This could include an injunction being filed which would prohibit the employee from competing with the company that has the non-compete agreement. Additionally, the company may file a lawsuit seeking damages against the employee. If the company is successful in its lawsuit, the employee may be required to pay the company for any losses it incurred as a result of their violation of the non-compete agreement.

Non-Compete Agreement Attorneys in Houston

If you're considering signing a non-compete agreement, it's essential to have the clause reviewed by an experienced employment attorney. Employment lawyers have the knowledge needed to determine whether your non-compete agreement is likely to be enforced by a court.

The team at Kennard Law, P.C. has helped countless employees ensure that they are aware of all the fine print before signing any contract. For your employment contract questions, contact Kennard Law, P.C. right away. (855) 499-4514