In terms of geographic scope, non-compete agreements are more likely to be applied in court if they do not limit a worker beyond the areas in which he or she has actually worked for the employer seeking to enforce the agreement. Restrictions that go beyond these geographical areas are generally considered inappropriate. The same goes for Merritt Hawkins & Assocs. LLC v. Gresham, 79 F.Supp.3d 625, 641 (N.D. Tex. 2015), held that a non-compete clause applying for permanent and temporary medical staff is not a sectoral exclusion if it does not prohibit the worker from working in „other sectors of the medical personnel or industry“. A Texas non-competition or non-competition agreement is intended to restrict the location and nature of the work an employee can perform. [ JUMP TO: Click here to answer questions about setting me up to help solve your texas non-compete problem, then click here to read the real customer reviews.] Why it was ranked in the top five: The Fifth Circuit confirmed once again that an outgoing employee`s industry limitation, which is not limited to a particular geographic area or the customers the employee has dealt with, is not applicable under the Texas Covenants Not to Compete Act. Here in Texas, we know that business thrives when there is free trade and competition, but companies are still able to take steps to protect their interests from employees who go to greener pastures.
Under Texas law, companies are able to negotiate contracts with their employees that limit their competitiveness against the company when they leave the company. These agreements are called non-competition or non-competition agreements. Each state has different non-compete laws and it`s important to understand when a non-compete clause is enforceable under Texas law. When it comes to non-compete rules, the Texan`s statute contains the following: While getting out of a non-compete clause in Texas can be complicated, there are a large number of strategies that employees can use to show that a non-compete clause is not applicable. To protect company goodwill and confidential information, a Texas employer can use a non-compete clause. A non-compete clause is applicable in Texas if it is supported by a valid consideration and is proportionate to temporal, geographic and limiting activities. . . .