Non-Compete Agreements in Dallas, Texas
Defining Non-Compete Clauses and Agreements
When you hire an employee or develop a business relationship with another
party, there is always the risk they will use their knowledge of your
business to begin a competing business or work for a competitor once the
relationship comes to an end. Fortunately, non-compete agreements and
clauses can protect you and prevent this from happening.
What is a Non-Compete Agreement in Texas?
A non-compete agreement or non-compete clause in a contract prohibits a
person or business entity from providing services or engaging in business
– in specific markets and locations, and for a certain time period
– in a manner that would compete with your business. The purpose
of non-competes is to protect your company from losing employees to direct
competitors who will leverage inside knowledge or contracts.
To protect a company's confidential information, a Texas employer can
utilize a non compete agreement. A non compete agreement is enforceable
in Texas if it is supported by valid consideration, and is reasonable
in time, geographic scope, and activities to be restrained.
General Provisions in Non-Compete Agreements
Most non-competes contain the following general provisions:
Reason for the non-compete. There must be a specified, reasonable motivation for the non-compete clause
Effective date. The effective period and terms need to be specified in order for a non-compete
to be enforceable. The time period of the restriction from working for
a competitor or as a competitor needs to be reasonable for your business industry.
Non-solicitation. While non-solicitation clauses are not always in non-competes, it is best
to have one to protect your clients or employees from being poached by
Geographic area. A non-compete can only be enforced within a certain geographic area.
Compensation. There needs to be some form of compensation, such as benefits of employment,
for not competing.
Penalties. There are certain penalties for breach of a non-compete agreement, including
being susceptible to a lawsuit.
Let The Law Offices of Dan Chern, P.C. Help You Today
If you have any questions about what’s right for your company, or
if you need legal representation to enforce your non-compete clause or
agreement, look no further than the Law Offices of Dan Chern, P.C. With
over 20 years of experience, our Dallas
business litigation lawyer has a thorough understanding of Texas business law to determine the best
course of legal action.
and schedule a case evaluation today.