But there was another problem with the non-compete clause in Plus. Remember the role of janitor of Haass and Wright, that is, the principle that a non-competition clause must have some relation to the worker`s activities. The non-competitor of Accruent may have prohibited the employee from working for a competitor, regardless of his or her role, i.e. even if he “emptys the trash” for a competitor. The Tribunal accepted that a non-compete clause does not apply to an employee working for a competitor in any capacity. To address this shortcoming, the Tribunal reformed the non-competition prohibitions by prohibiting only the worker from working for a competitor in the same or essentially similar role that he played for his former employer. Id. at 6-7. Not ready to talk to us? No problem. Read on to learn more about what makes a non-compete clause applicable in Texas. In most years, non-competition prohibitions are designed to prevent a worker from leaving his or her job and competing with his former employer to attract customers or businesses. Here in Texas, we know that business thrives when there is free trade and competition, but companies are still able to take steps to protect their interests from employees who go to greener pastures.
Under Texas law, companies are able to negotiate contracts with their employees that restrict their competitiveness with the company when they sell the business. These agreements are called agreements that are not in competition or that are not in competition. Several other Texas Supreme Court cases have improved the applicability of competition agreements that culminated in 2011 in the Marsh USA case. In it, the court found that the employer`s thinking should not “raise” the need to limit competition in exchange for the employee`s promise not to compete. On the contrary, the review must be “proportionate” to the need to limit competition. Considerations such as confidential information, trade secrets and the need to protect the value may, in the right case, meet this standard. 2. When developing the non-competition clause, consider limiting the limit to customers with whom the employee has been in contact during his or her business in the company. You can also include customers on whom the employee has received confidential information.
(Look at my non-compete plain-language for some ideas.) Over time, unlimited competition restrictions are clearly illegal. It is not possible to give a certain number of months or years of courts as an appropriate duration for non-competition agreements. It depends on the sector in which the company is located, the role of the employee in the company, the market in which the company operates and other factors. Non-competition prohibitions do not necessarily have to be specified, but in the current circumstances, the courts will only enforce these agreements for a reasonable period of time. A Texas non-compete agreement is intended to limit the location and nature of the work a worker can do. With respect to non-compete obligations, the Texas Workforce Commission provides detailed information on non-compete obligations in Texas and how they operate.