Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.
Texas Employee Restrictive Covenants
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How to fill out Employee Restrictive Covenants?
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FAQ
How long is a non-compete agreement valid in Texas? There is no specific time period during which a non-compete agreement is valid in Texas. The duration of a non-compete agreement in Texas must be reasonable, meaning that it must be no longer than necessary to protect the legitimate business interests of the employer.
The most common types of post-employment restrictive covenants include non-competition clauses and restrictions prohibiting the solicitation of customers/ clients and employees, each of which are in effect both during the employment relationship and for defined period thereafter (e.g. six months).
In general, however, non-compete agreements in Texas are typically only enforceable for a period of one to two years.
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.
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
As for the time of the non compete, courts become hostile if the period is greater than five years but are seldom going to object to a period of three years. Such clauses are routinely enforced in California and the courts often grant injunctions prohibiting a past owner from seeking to violate that clause.
To be enforceable, a non-compete agreement's provisions must be reasonable. The definition of ?reasonable? can vary, based on the industry, job title, location, and other factors. Most non-compete agreements last between six months and two years, but rarely longer than that.
Unlike a handful of other states where non-compete agreements have few restrictions or are outright prohibited, Texas is fairly permissive on the enforcement of these agreements. Public policy ing to Texas courts has generally been to promote competition instead of limiting it.
