A non-compete clause is a fairly common term used in business. A non-compete clause is exactly what it sounds like. As our Arlington, TX business litigation attorney can explain, it is a contractual agreement in which an employee agrees to not work for or with a competitor of that company after their employment ends. The goal of non-competes is essentially to make sure that an employee won’t go against the company after their employment is over, whether it be out of malice or not. Let’s discuss the elements of a non-compete and the controversy behind them.
How They Work
Non-compete clauses have essentially four outcomes for the employee. A non-compete can apply to both contract positions and W-2 positions. Based on how the noncompete is made, it can restrict where the employee works, when the employee works, and how. A noncompete conducts how someone makes further decisions in their career, and can restrict them from accepting or even seeking another job. Due to this, an employee can be forced to stay in a job they don’t like. This is why it is very important to get legal advice before signing a noncompete as our lawyers who were rated in the top 100 of the National Trial Lawyers can explain.
The Downsides Of A Non-Compete
A noncompete can be beneficial for the employer who wishes to protect their company from liability, but not the employee. For the employee a noncompete provides assurance that none of their employers will compete against them in the business role. But for many employers who have signed a noncompete, this can mean they are stuck in a job and may have to relocate entirely or take a lower paying job if they need to get out of their previous job. However, it is possible to break a non-compete agreement.
How It Applies To Texas Residents
Noncompetes can be enforceable in Texas only if they meet a few requirements. First, the noncompete has to be tied to another contract. Essentially it cannot be enforced by itself but has to be a part of an enforceable agreement, or a contract. Next, the employee must receive something valuable in return for signing a noncompete to establish valid consideration. This could be as simple as a promise of employment. The noncompete should also have reasonable limitations, such as geographical area and types of jobs. The noncompete must make sure that it is protecting the employer’s business, such as trade agreements and customer privacy. Lastly, the noncompete mustn’t make the employee’s career difficult to practice. These requirements ensure that the noncompete is fair for both parties. Requirements along with these can be negotiated with the employer. If the
employer wishes to get out of the noncompete, they can negotiate with their employer if they feel that the terms presented are unreasonable.
When navigating a noncompete, it is important to consult a business lawyer like those at Brandy Austin Law Firm. Our team which is made up of lawyers who were rated as top attorneys by Fort Worth Magazine can help you decide whether the noncompete fits your situation and when to negotiate for better terms with your employer.
