Non-Compete & Non-Disclosure Agreements
In some states, non-compete agreements are unenforceable. However, the State of Texas recognizes an employer’s right to enforce a non-compete agreement against its employees. Likewise, non-disclosure agreements are enforceable in Texas as well, and other protections such as the Texas Uniform Trade Secrets Act (TUTSA) provide coverage for employers who want to protect confidential information.
Am I allowed to take a new job when I signed a non-compete?
One of the most commonly asked questions regarding non-competes include, “Can I go work for somewhere else?” The answer to this question, like many areas of the law, are not in black and white. When interpreting a non-compete agreement, a Judge will look at:
- The duration of the non-complete; and
- The geographic restriction of the non-compete.
Overall, the non-compete must be reasonable in both the length of time and the geographic area. By way of example, it would be unlikely for a judge to enforce a non-compete prohibiting employees from finding work anywhere in the United States for a period of 5 years.
What happens if my non-compete is too broad?
If a non-compete is too broad, the agreement will not likely be wiped clean. Instead, the law gives the Judge the option to “reform” the agreement. This means that the Judge can cut back the scope of the restriction to a reasonable time and geographic location while allowing the contract to stand.
What can an employer do to enforce its non-compete?
An employer can sue you / your future employer for injunctive relief. If successful, a court can order you and a subsequent employer to stop working in a manner that violates the non-compete. Failure to comply with a court order can have civil and criminal consequences.
Have an employment lawyer review your non-compete / non-disclosure agreement
As stated above, the law is rarely black and white. Because of this, it remains important to consult with an attorney about your options when it comes to these agreements. Contact me, a Texas employment lawyer, to review your non-compete or non-disclosure agreement.