Make a Texas Non-Compete Agreement

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What Is a Texas Non-Compete Agreement?

In Texas, a non-compete agreement is a way for companies to prevent their employees from disclosing their trade secrets and other legitimate business interests to their competitors. Non-competition agreements give Texas employers a written employment agreement that their employees will not leak sensitive information once their employment comes to an end.

These agreements often prohibit the employee from working with a competing company for a certain period of time, working within a certain scope of activity, and similar companies within a certain geographic area. If the employee is found to have broken the agreement, they may be held liable if the former employer decides to sue. While a non-compete agreement may stand on its own as a contract, an employment contract may also have a non-compete clause or a restrictive covenant in it.

To ensure the enforceability of non-compete agreements, Texas business owners should seek legal advice from a law firm that practices employment law. Texas law is very specific about the use of these agreements. Enforceability of non-competes in Texas courts comes down to many factors such as geographical area, providing sufficient consideration to the former employee, and other reasonable limitations when having the document signed before the new job is started. An employment lawyer can help ensure that the non-compete agreement is enforceable and answer any questions the Texas business owner has about the entire process.

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