Noncompete agreements allow employers to protect their business interests by limiting where and how former employees can work after leaving the company. However, there are limits to how far employers can go when enforcing these agreements.
Understanding these limits can help you know when a noncompete agreement becomes unreasonable to the point of warranting legal action.
Criteria for noncompete enforcement
Noncompete agreements in Texas must meet specific criteria to be enforceable. First, the agreement must be part of an employment contract. The employer must provide something valuable in return, such as specialized training or access to confidential information. Without these, the noncompete may not hold up in court.
Texas law also requires that noncompete agreements be reasonable in their restrictions. For example, the agreement cannot cover too broad a geographic area. If an employer tries to stop an employee from working anywhere in Texas or beyond, the agreement likely goes too far. Courts usually limit the area to where the employer actually does business.
The length of time the agreement restricts a former employee’s work must also be reasonable. Most noncompete agreements in Texas last from six months to two years. Longer time frames may be excessive unless the employer can justify the need for such a restriction.
Your rights under an unreasonable noncompete agreement
When employers create overly restrictive noncompete agreements, they risk having the entire agreement invalidated by the court. In Texas, courts will not uphold agreements that unfairly restrict an employee’s ability to make a living. If you are dealing with an excessive noncompete agreement, you may have the right to challenge the restrictions if they go beyond what Texas law considers reasonable.
It is also possible that an employer might go too far in taking excessive measures to enforce a noncompete agreement. If you feel that a former employer is harassing you or retaliating against you for seeking new employment, it may be worth considering a lawsuit to recover the damages this excessive behavior caused.