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  1. #1
    Join Date
    Dec 2007
    Posts
    1

    Default Rules On a Non-Compete

    I had to sign a non compete document due to the company saying that I had too (which I did not want to do). The company is located in California but has an office in Texas. I am looking for new employment and found offers...when I advise my company they said that I would have to wait a year before I could work in the same field that I am in.

    I have been with this company for 5 years and received "meet expectations" on my evaulations every quarter. I know of others who have left the company for new employment with no hassel. Is there some way I can get out of it? What are the laws state for a non-compete in Texas

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

    Default Re: Rules On a Non-Compete

    You were working in Texas, and are looking for a new job in Texas?

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Rules On a Non-Compete

    You might want to contact an employment or contract attorney to review the non-compete to see if it is enforceable. I am assuming you signed the agreement in Tx./working in Tx. & have other offers in Tx.? If so, take the non-compete agree. to a Tx. attorney.
    (Generally, non-compete agreements are enforceable in Tx. if they are ancillary to or part of an otherwise enforceable agreement to the extent that they contain limitations as to time, geographical area, and scope of activity and are reasonable & don't impose a greater restraint than necessary to protect the business.)

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

    Default Re: Rules On a Non-Compete

    Quoting the Texas Court of Appeals:
    Quote Quoting Trilogy Software v. Callidus Software, 143 S.W.3d 452 (2004)
    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.

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