What Is A Noncompete Agreement?

A noncompete agreement is a document that restricts employment opportunities both during and for a period of time following the end of an employment relationship. These agreements are used for many purposes.

Noncompete agreements often go hand in hand with confidentiality agreements, which prohibit you from disclosing information and trade secrets that you obtained while working for a company.

Why Do Noncompete Agreements Exist?

Some employers require their employees to sign noncompete agreements in order to prevent the employee from going to work for one of the employer's competitors. They generally remain in effect during the employment relationship and for a limited period of time following the end of the relationship. This allows the employer to prevent the employee from using the employer's confidential information or other information the employee has had access to during his employment to provide an advantage to a company that competes in the market with the employer.

How Long Do They Last?

Typical noncompete agreements in Texas range from six months to two years, though they can be longer or shorter.

How Expansive Can Noncompete Agreements Be?

In general, a noncompete may prevent an employee from working for a company that competes with the employer. The scope of prohibited activity will vary, but in general it has to be reasonably related to the work that the employee performed for the employer, and must also be within the same geographic area that the employee served for the employer.

What Happens If I Violate A Noncompete Agreement?

A noncompete agreement is a valid contract that can be enforced in court if needed. Therefore, take the agreement seriously. You could be subject to a claim for injunctive relief and financial penalties if you violate the terms.

Do I Need A Lawyer?

If you find yourself subject to litigation or you need clarification or a consultation regarding a noncompete agreement, contact the Law Offices of Kell A. Simon at 512-898-9019, or fill out my online form.

I am a certified labor and employment law specialist by the Texas Board of Legal Specialization. When you meet with me, I will provide the information and personal advice you need to understand your present situation and future liabilities.

I proudly represent clients in Austin, Houston, Dallas and across Texas.