What If My Non-Compete Agreement Is Too Broad?

There are situations where a court can reform a non-compete agreement. If the court finds that it is too broad, the court can decide to reduce either the time, the geographic scope, or the scope of the activity being restrained. The issue that employers face is that if they have a non-compete that is too broad, there might be a period of time where the non-compete is essentially not enforceable, until there is a final trial and the agreements can be reformed.

What Can An Employer Do To Prevent A Former Employee From Breaching A Non-Compete Agreement?

The first step is to inform the employee, in writing, of their obligations under the non-compete. The second step is to ask the employee what they plan on doing in the future. Are they going to open up a competing business? Are they going to a competitor? Are they just going to go and do something completely different in another industry? The third step, if you suspect that the employee might be malicious, is to shut down any computer access or any access to any confidential or proprietary information.

If the employee has already left and gone to a competitor, you can certainly inform that new employer, in writing, that there might be issues and that if they are not careful with their obligations that they could be sued as well. Another thing you can do is have an expert come in and do a forensic analysis of their computer usage leading up to their resignation or their termination, to determine if they’ve made copies of sensitive materials or downloaded/uploaded confidential information.

Do I Need The Assistance of An Attorney To Draft My Non-Compete Agreement Or To Enforce It?

Often the easiest non-compete agreements to defeat are the ones that employers draft on their own, without an attorney. It is always beneficial to, at the very minimum, consult with a lawyer who practices in this area. We advise both employers and employees to seek legal counsel as soon as possible when dealing with these situations. Oftentimes, even when there is the threat of potential litigation, the earlier both sides can get competent legal representation involved, the sooner the situation can be resolved.

For more information on Broad Non-Compete Agreement In Texas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (281) 277-3066 today.