Protecting your Business Interest with a Non-Compete Agreement

Enforcing non-compete agreements can be quite challenging considering the rapid landscape change in this area of law in Texas. The Texas Supreme court at one time ruled that all non-competes, primarily designed to limit competition restrict a party’s ability or right to engage in a common business, were unenforceable. But the Texas legislature passed legislation shortly thereafter, making non-compete agreements enforceable, should they meet the following requirements:

In common terms “otherwise enforceable” in the employer-employee relationship generally means that the employer promises to give the employee trade secrets, confidential information or specialized training.

Reasonable limitations are also applicable on a case-by-case basis. For example, an employer may limit an employee from operating in a similar field for a certain period of time within a particular geographical area where the employee currently interacts with customers, clients and suppliers. If an employer is overly broad with their non-compete terms, a court may find that the non-compete agreement is unenforceable, or revise the portions that are overly broad.

Garcia-Martin & Martin, P.C., is a business and employment law firm located in Sugar Land, Texas. Their attorneys work with businesses and individuals in all types of business and employment matters throughout the Houston, Texas area. They can be reached at (281) 277-3066. You may also visit their website at www.mgmartinlaw.com for additional information and practice areas.