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The pros and cons of non-compete agreements

When considering new opportunities in Texas, pay close attention to non-compete agreements. Non-compete agreements have traditionally been enforceable in Texas that fairly restrict the ability to work in a specific industry, in a specific location, for a specific period of time. However, the key word here is "fairly," so non-compete agreements that are too broad in their definition of the nature of the work, are too far-reaching in their geographical coverage, or are restrictive for too long a time period will not be enforceable.

Whether you are looking to start a new role or you are looking to bring someone else into a new role, you want to be sure you understand the terms so you will know exactly how enforceable the non-compete is.

If you are looking at a role as a key new employee, partner or shareholder in a company, you want to be careful not to sign away your rights to work in your industry of choice, in your location of choice, if you ever choose to leave the company.

If you are a company looking to bring on a key employee, partner or shareholder, you want to ensure that this person cannot cripple the business you have worked so hard to build if they decide to leave in a less than honorable fashion.

If you would like to learn more about whether a non-compete agreement may be useful for you and, if so, how to properly structure the terms, please feel free to contact one of our business attorneys.

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Palmer Lehman Sandberg, PLLC
8350 N. Central Expressway Suite 1111
Dallas, TX 75206

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