Your career path in Houston may allow you to climb the corporate ladder within a single organization. Then again, you may be forced to leave your current company if you want to seek a promotion. Doing so can be difficult, however, if your current employer says that you are limited in where you can work and who you can work for by the terms of a non-compete agreement. Several of those who have come to us here at The Kruckemeyer Law Firm seeking assistance were made to sign non-compete agreements as a condition of being hired on to a new company. The question that almost all of them have (and that you might also share) is to what extent such agreements are actually enforceable.
It is generally assumed that business competition should be encouraged, not limited. Thus, lawmakers tend to place very strict requirements on those attempting to enforce non-compete agreements. According to the Texas Workforce Commission, if you have such an agreement with your employer, the following conditions must be met in order for it to be enforceable:
- The agreement is ancillary to or part of another enforceable agreement (such as an employment contract)
- It is reasonable in its limitations as to time, term and geographic area
- It must be shown that not enforcing the agreement would be damaging to the company and, at the same time, not place unreasonable restrictions on you as to your ability to practice a trade or make a living
- If an at-will employment agreement, it contains an executory promise (such as providing you with certain career training, paying for your education) that your employer has fulfilled
You can learn more about the limitations to certain business agreements by continuing to explore our site.