Non-Competes in Texas

[AustinOriginal40]

I recently graduated from a "private proprietary career school operated under the Texas Workforce Commission, Career School and Veterans Education Section."

They requested I sign a non-compete clause as a requirement of acceptance. I did. I did not plan to stay in the 50 mile radius covered by the clause after graduation.

Due to family circumstances, I will be staying in the area for several years.

I have been unable to find information regarding non-compete clauses with regard to educational institutions. Can anyone help?

[aaron]

You were an employee of the institution? The Texas courts explain non-competition clauses as follows:

Enforceability of the non-compete agreement

The enforceability of a covenant not to compete is a question of law. Light v. Centel Cellular Co. of Tex., 883 S.W.2d 642, 644, 37 Tex. Sup. Ct. J. 838 (Tex. 1994); Alex Sheshunoff Mgt. Srv., L.P. v. Johnson, 124 S.W.3d 678, 684 (Tex. App.--Austin 2003, pet. filed). A covenant not to compete is a disfavored contract in restraint of trade and is unenforceable unless it meets certain statutory requirements. See Tex. Bus. & Com. Code Ann. §§ 15.05, .50 (West 2002); Sheshunoff, 124 S.W.3d at 684. Those requirements are set forth in Section 15.50 of the Texas Business and Commerce Code:

A covenant not to compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement at the time the agreement is made to the extent that it contains limitations as to time, geographical area, and scope of activity to be restrained that are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the promisee.

Tex. Bus. & Com. Code Ann. § 15.50 (a). Section 15.50 thus imposes two threshold requirements that a covenant not to compete must meet in order to be enforceable. The first is a two pronged test: there must exist an otherwise enforceable agreement that must have existed at the time the non-compete agreement is made. Second, the non-compete agreement must be ancillary to or part of that "otherwise enforceable agreement." We consider each requirement in turn.

[AustinOriginal40]

Aaron:
Thanks for your reply.

I was NOT an employee of the institution. I was a student. That's why I question the noncompete. When I started the school, I thought I would be moving out of the area (the geographic area is 50 miles and the time is 3 years, both reasonble.) Things changed. Granted I should of thought that through before I signed, but I didn't.