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  1. #1

    Default Texas: No Compete clause

    Hello

    I had signed an "Employee Confidential Agreement" with my company based in Texas about three years ago.

    The language goes like this:

    The term client means and includes any person, firm, corporation or entity for whom I performed services while an employee of ________

    I will not, at any time during my employment and for 12 months after termination of my employment, directly or indirectly engage in any of the following activities on behalf of any person, firm, corporation or entity other than _________, whether as an individual, independent contractor, officer, parther, employee, agent, consultant, shareholder or financial backer of any firm or corporation:

    (a) solicit any Client to terminate an existing business relationship with ____________ and accept a position of employment (or a contract with/employment through a competing firm) with a Client.

    I would like to know if this clause can be enforced given that this is one part of the Employee Confidential Agreement. I have not signed any other document.

    Please provide your valuable feedback at the earliest.

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Non-Competition Clause

    Whether or not the clause is enforceable depends upon the laws of the state where it was issued, and to a lesser extent upon the laws of the state where it is to be enforced.

  3. #3

    Default Clarification needed

    Hello

    I greatly appreciate your prompt feedback. However, it was not clear if the no-compete clause is enforceable in the state of Texas under the situation described in my note.

    Please advise.

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Texas Non-Competition Clause

    Non-competition provisions are generally enforceable in Texas, assuming that they are reasonable in their scope and provisions.
    Quote Quoting Texas Business and Commercial Code, ยง 15.50
    Criteria for Enforceability of Covenants Not To Compete
    (a) Notwithstanding Section 15.05 of this code, and subject to any applicable provision of Subsection (b), 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.
    There are additional provisions in that code section specifically pertaining to physicians.

    Within those criteria, analysis is on a case-by-case basis, depending upon factors including duration, geographic scope, and the type of work affected by the agreement. The only information you provide is to time, and there are Texas cases upholding agreements which last from two to five years, so that of itself probably would not invalidate the agreement.

    If you want a specific analysis, you should have the actual document reviewed by a Texas lawyer.

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