Non-compete agreements are a common feature in many employment contracts. They are generally designed to protect confidential information, trade secrets, and other proprietary knowledge that an employer has imparted to their employees. Texas, like many other states, has specific laws governing non-compete agreements. If you are an employee or an employer, it is essential to understand the enforceability of non-compete agreements in Texas.
The Texas Non-Compete Law
Texas law allows employers to enter into non-compete agreements with their employees, provided they meet certain criteria. In Texas, non-compete agreements must be reasonable in terms of duration, geographic scope, and the scope of restricted activities. A non-compete agreement that is too broad in any of these areas may be deemed unenforceable.
Duration: The length of time of a non-compete agreement should not be greater than is reasonably necessary for the employer`s protection. The duration of a non-compete agreement in Texas may not exceed two years.
Geographic Scope: The geographic area that a non-compete agreement covers must also be reasonable. If the agreement restricts the employee from working within a radius that is too large, it may be considered unenforceable.
Scope of Restricted Activities: The scope of restricted activities must be limited to protecting the employer`s legitimate interests. If the restrictions in the agreement are too broad, they may be deemed unenforceable.
Enforcement of Non-Compete Agreements in Texas
If an employer believes that an employee has breached a non-compete agreement, they may seek to enforce the agreement by seeking an injunction, or a court order, to prohibit the employee from engaging in the restricted activities. In Texas, the burden of proof is on the employer to show that the non-compete agreement is reasonable and necessary to protect their legitimate business interests.
If a court finds that a non-compete agreement is overly restrictive, it may be modified to include only those restrictions that are deemed necessary to protect the employer`s legitimate interests. Additionally, if a court finds that a non-compete agreement is unreasonable and cannot be modified, the agreement may be deemed unenforceable.
Conclusion
Non-compete agreements are a common feature of many employment contracts in Texas. However, they must meet specific criteria to be enforceable. The duration of the agreement, the geographic scope, and the scope of restricted activities must all be reasonable. If these criteria are not met, the agreement may be deemed unenforceable. If you are an employer or an employee in Texas, it is essential to understand the enforceability of non-compete agreements to protect your interests.