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What should employers should know about noncompete agreements?

On Behalf of | Sep 21, 2020 | Business Law And Litigation |

Many employers in Texas and beyond might ask their potential employees to sign a noncompete agreement. A noncompete agreement might request that employees don’t take jobs with competitors in the future, and have other similar requirements. The agreement usually applies to a certain region and a particular time frame. However, in some cases, the agreements can be negotiable.

Employers can use noncompete agreements for a number of reasons, including limiting the amount of turnover, protecting client information, and guarding information about their company. Typically, new hires are asked to sign a noncompete agreement, but some employees are asked to sign an agreement if they leave or their employment is terminated. An employee might wish to negotiate the agreement before they sign it to prevent noncompete agreement disputes in the future. In this case, they might hire an employment attorney to help them negotiate a fair deal.

When can a noncompete agreement be negotiated?

Parts of the noncompete agreement might be negotiable if the terms are vaguely defined. For example, if the company doesn’t define its “competitors,” the employee might negotiate that part of the agreement to broaden their future employment potential. An employee might also be able to negotiate the time frame after which they’re allowed to work for competitors. Both the employer and the employee should have a clear understanding of the agreement before it’s signed to prevent disputes.

What to do in the case of a noncompete agreement dispute

In the case of a noncompete agreement violation, an employer might wish to speak with an attorney to see how to proceed. The attorney might be able to help the employer resolve the situation with the former employee. If not, the attorney may be able to help the employer build a court case and take legal action against the former employee.