Not ready to talk to us? No problem. Read on to learn more about what makes a non-compete clause applicable in Texas. Agreements that restrict the occupational mobility of former workers or limit their demand to clients and workers of former employers are trade restrictions and are subject to the law [i.e.dem Texas Covenants Not to Compete Act]. Many Texas companies have unseened agreements with their employees, but not all companies implement them. Some companies will sue outgoing employees for violating non-compete agreements, even thinking that such an agreement might not be valid under Texas law. Others will not care about the application, even if they have valid agreements. The fact is that the validity of a non-compete agreement is only one factor in a company`s decision to apply it or not. It is fairly easy to understand why a non-invitation agreement is a restriction on trade or trade. Think about it. Imagine apple and Samsung signing a contract stating that Apple will not recruit smartphone customers in Asia and that Samsung will not have smartphone customers in North America.
The Department of Justice would have recovered. This provision is subjective and often depends on the number of sensitive information the employee has accessed and the type of position involved. Engineers, researchers, designers, etc., would likely have access to information that would impose their competition bans. Drivers, employees, retail and related employees may be considered less risky. Businesses have a strong interest in protecting their trade secrets. To do this, they often invite staff to sign non-competition agreements, also known as restrictive agreements. These agreements are designed to prevent a worker from leaving the company and creating a competing business on the street, to the knowledge of his former employer. Employers also often use non-invitations or non-incentive clauses in their non-compete agreements to prevent a former employee from soliciting clients or current workers from his or her former employer.
With regard to the application of Texas legislation, non-invitation agreements are considered non-competition agreements, so the information we are debating here regarding the development and application of non-competition obligations also applies to non-invitations. The law in this area can be incredibly confusing and/or detailed, so this blog is only designed to give employers a very simple and general overview. We always recommend that employers use the assistance of a lawyer in the development or use of competition and/or non-demand agreements.  See id.; See Tex. bus. Code Ann. See also Beebe, 320 S.W.3d to 853 (Bund was considered unenforceable because no buyback clause is included).  See Gallagher Healthcare Ins. Serves.
v. Vogelsang, 312 S.W.3d 640, 654-55 (Tex. App.-Houston [1st Dist.] 2009, fart. denied) (“A number of courts have held that a utility contract limited to the employee`s clients is a reasonable alternative to a geographic boundary”); M-I LLC v. Stelly, 733 F.Supp.2d 759, 799-800 (S.D. Tex. 2010) (which takes a “holistic” approach and does not make the absence of geographic restriction uncompetitive when the period was only six months, when staff were in senior management positions and the employee had access to the company`s business secrets). To understand how you can exit a Texas non-compete agreement, you must first determine what makes a non-compete agreement applicable – and thus what could make a non-compete agreement unfeasible. In Texas, the reason for termination – whether for reasons, for no reason, dismissal, reduction of violence or some other reason – has no influence on the applicability of a non-compete agreement.