Non-Compete

What Is a Non-Competition Agreement?

A non-compete agreement is a legal clause or contract that prohibits an employee from entering into competition with the employer after the employment period concludes. Such an agreement also prohibits the employee from revealing proprietary information about the employer to any other parties both during and after employment. Most contracts will specify how long this non-compete clause will last after their employment ends.

Common industries that employ non-compete agreements include media, information technology, finance, manufacturing, and the corporate sector.

Practice Areas

• Contract Disputes
• Partnership & Shareholder Disputes
• Non-Compete

Enforcing a Non-Compete Agreement in Texas

According to Texas law, a non-compete agreement is enforceable only if it:

• is ancillary to or part of an otherwise enforceable agreement;
• contains reasonable limitations as to time, geographical area, and scope of activity;
• can be shown by the employer how non-enforcement would harm it and that enforcement would not place an unreasonable burden on a person's right to practice a profession or trade or otherwise make a living.

Note that the Texas Supreme Court upholds that an "otherwise enforceable agreement" can include an executory promise made in conjunction with an at-will employment agreement if the employer actually performs the promise made at the time that it secured the non-competition agreement. Such a promise might be that it will give certain training or allow access to certain proprietary information.

Non-compete laws are complex matters, as Texas seeks to facilitate a fair market of competition but also recognizes the freedom to contract. As a result, each non-compete case will really depend on the situation, the terms of the contract itself, and the consequences of enforcement.

Questions? Contact the Omar Ochoa Law Firm

If you have questions about your non-compete agreement, contact our law firm for legal guidance. We are highly experienced in the area of business litigation and contract law, so we can provide a sound analysis of your situation to better plan your next steps. From individual employees to large corporations, we represent a range of clients and will fight assertively for your side as your personal advocate.