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Employment Agreement between Dentist and PLLC with Covenant Not to...

Tarrant Texas Employment Agreement between Dentist and PLLC with Covenant Not to Compete

Name: Tarrant Texas Employment Agreement between Dentist and PLLC with Covenant Not to Compete
Brand: US Legal Forms
Rating: 4.87 (355 reviews)

Category:

Employment - Dentists

State:

Multi-State

County:

Tarrant

Control #:

US-0255BG

Format:

Instant download

Description

This form is an employment agreement between a dentist and PLLC with covenant not to compete.

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How to fill out Tarrant Texas Employment Agreement Between Dentist And PLLC With Covenant Not To Compete?

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FAQ

You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.

The well-known general rule is that a covenant not to compete is only enforceable if its terms are reasonable and necessary to protect the legitimate business interests of the employer.

A covenant not to compete will be deemed valid if it only restricts the employee's opportunity to compete while they remain employed with the employer requiring the covenant, but imposes no restrictions on the employee once they separate from the employment.

Many dental contracts include some version of a restrictive covenant, also called a non-compete clause. These clauses prohibit an employee from practicing within a specific geographical area (typically a defined radius) for a certain period of time after leaving a practice.

A big question that often comes up is: are these clauses enforceable. The answer is, as it usually is: it depends. It depends on whether they are reasonable. It must be reasonable as between the parties themselves and in light of the public interest.

An enforceable covenant not to compete must be: (1) in writing; (2) made a part of the employment contract; (3) based on valuable consideration; (4) reasonable as to time and territory; and (5) designed to protect a legitimate business interest of the employer.

Are covenants legally enforceable? Restrictive covenants are usually legally enforceable and binding if they have been set up properly, but can cease to be enforceable after a period of time in some circumstances.

A covenant not to compete can be found in an employment contract or a sale of business contract. In an employment contract, a noncompete clause usually limits the employee's ability to use the resources from the current employer to benefit a future employer.

How legally binding are restrictive covenants? Providing restrictive covenants are not void for restraint of trade and required to protect legitimate business interests, they will be viewed as legally binding. If restrictive covenants are introduced to existing employees, employer's need to provide consideration.

Typically, courts tend to enforce restrictions of between 6 and 12 months, depending upon the seniority of the employee concerned and their access to confidential information and clients. This is subject, of course, to the covenants being reasonable and necessary to protect a legitimate business interest.

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Tarrant Texas Employment Agreement between Dentist and PLLC with Covenant Not to Compete

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