A non-compete agreement can be a useful tool for an employer; however, because non-compete agreements are disfavored in Texas, an enforceable non-compete agreement must be carefully drafted to comply with Texas law. An employee can escape the limitations provided in a non-compete agreement if the non-compete agreement does not comply with Texas law. In Texas, an enforceable non-compete must accompany an otherwise valid agreement, must be reasonable, with limitations as to time, geographical area, and scope of activity, and must not impose a greater restraint than is necessary to protect an employer’s business interests. See Tex. Bus. & Comm. Code Ann. §15.50(a). The definition of ‘reasonable,’ the specific limitations placed in a non-compete agreement, and the amount of restraint ‘necessary’ to protect business interests are all subject to flexible interpretations that could result in an unenforceable non-compete agreement.
Do not hesitate to reach out to Akerly Law if you need an enforceable non-compete agreement drafted for your business or if you need an active non-compete agreement reviewed for enforceability. You might be surprised with the results of a review by experienced attorneys.