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The clause was as follows: ?[Employee will not] ? solicit, divert or hire, or attempt to solicit, divert or hire, to the competitive entity, any individual or entity, which was an actual or actively sought prospective client or customer of the company.?
Overall, non-compete agreements can be enforceable in Texas, but they must be reasonable and designed to protect the employer's legitimate business interests. It's also worth noting that certain professions are exempt from the Texas non-compete law, including physicians, attorneys, and licensed clinical social workers.
(c) [Employee name] agrees not to set up in business as a direct competitor of [company name] within a radius of [number] miles of [company name and location] for a period of [number and measure of time (e.g., ?four months? or ?10 years?)] following the expiration or termination of this agreement.
Working for a competitor company or competing individual. Starting a company that offers the same products or services. Developing competing products or providing competing services. Recruiting former colleagues to join their new business, although this can also be done through a non-solicitation agreement.
What is a Non-Solicitation Provision? Texas non-solicitation provisions (aka. non-solicitation clauses or non-solicitation agreements) prohibit the employee, both during employment, and for a period of time thereafter, from soliciting the employer's clients, employees, or both.
You agree that at no time during the term of your employment with the Company will you engage in any business activity which is competitive with the Company nor work for any company which competes with the Company.
Typically, non-compete agreements arise between an employee and employer or a purchaser and seller of a business. The agreement typically provides that the employee (or seller of a business) will not enter into the field of work, or a similar field, to that of the employer (or purchaser) for a certain length of time.
compete clause is a contractual term between an employer and a worker that blocks the worker from working for a competing employer, or starting a competing business, typically within a certain geographic area and period of time after the worker's employment ends.