Non-Compete Agreements

One of the growing issues in the employment arena is the use of, and enforceability of, non-compete
agreements by employers. Many employers require there employees to sign these agreements in an
attempt to prevent their employees from leaving the job and taking with them information on customers
or secrets about certain products, which can be used by a competitors. Employers usually require
employees to sign such agreements at the beginning of their employment, but occasionally such requests
are made after the employment relationship has begun. These agreements usually state that when the
employee leaves the employment of the company, he or she is not allowed to work for a competitor, (in
the region the employee has worked), for a certain period of time, (usually anywhere from six months to
three years).

The Texas Courts and Legislature have always viewed such agreements with some disdain, as they
restrict the rights of citizens to freely ply their trade. However, there is an understanding that a company
may have a legitimate interest in protecting its secrets and customer information from persons who
would could use the information and obtain an unfair competitive advantage. The recent balance struck
by the courts and the legislature in Texas on this issue is that a non-competition agreement will be
carefully scrutinized, and will only be enforceable within a normal employment relationship as long as the
employee is also being promised, and provided, some benefit related to the need for the promise. That is,
in order for the non-compete agreement to be enforceable, the employer must provide the employee with
some trade secret or customer information in order to perform his or her job, which in turn would
necessitate the need for the non-compete agreement. In addition, the time and geographic restrictions
must be limited to only that which is necessary to obtain adequate protection.

This area of the law is extremely complex, and constantly evolving; thus, it is impossible to provide a
complete explanation of the law in this website. However, if you are (a) an employee that is in need of
assistance trying to determine your rights under a non-compete agreement that you signed, or (b) an
employer and you want to enforce the terms of a non-compete agreement that is being violated by a prior
employee, please fill out and send our email contact form. We would be happy to review your matter,
and contact you about your potential options. PLEASE DO NOT DELAY, as this may prevent you from
being able to assert your legal rights.