In that result, the Texas Supreme Court ruled that „the Texas Constitution protects contractual freedom.“ But the court also reaffirmed the legal restrictions that are not imposed on competition. The Tribunal found that „inappropriate restrictions“ could „impede legitimate competition.“ Good points. The myth #2 is definitely out. I have people who have signed non-competitive contracts who say, „But Texas is a state of work, isn`t it?“ In addition, the agreement must clean up an agreement or a division when it is concluded. To meet these criteria, non-competition obligations are generally concluded at the beginning of employment as part of the worker`s signing of a confidentiality and confidentiality agreement. Non-competition prohibitions are also often made in connection with the sale of a business. All employment relationships are contractual, but most employers do not require their employees to sign a formal written employment contract, but rather expect an informal oral agreement. In most cases, a verbal agreement is sufficient for lower-level workers; However, for workers who have access to confidential or government information, such as customer lists, formulas or business processes, the employer can protect the company by having the worker execute an employment contract in writing containing provisions protecting the company`s confidential information and preventing the outgoing employee from directly competing with the employer in a similar business. For executives and/or executives, a written employment contract is a common and necessary practice to recall the conditions of the employment relationship and protect the employer. Below is a brief explanation of the most commonly used labour policy provisions. Even if the courts do not support the application of an invalid non-competition clause, there are certainly cases where non-competition prohibitions may be valid and applicable. Yes, for example. B, you hold a high-level management position, whether you work with the most lucrative clients or clients in your company, or have trade secrets while you work, your employer may have good reason to ask you to sign a non-compete agreement.
If you sign a non-compete agreement, it is important to understand that you are signing a binding contract that may limit the work you can do after leaving the market. Many employees who sign existing non-competition obligations may require severance pay or benefits to protect them for the duration of the non-competition agreement. If you are invited to sign a non-compete agreement for a high-level position in Houston, Texas, Moore and Associates are labour law specialists who can help you understand the contract, your responsibilities and your rights and may be able to negotiate with your employer advantageous and protective terms for both parties. Contact Moore and Associates today to find out more. Myth #1: Non-competition bans are unenforceable in Texas. That`s totally untrue. In Texas, non-compete clauses apply if they meet certain requirements set out in the Texas Covenants Not to Compete Act.