NON-COMPETE AGREEMENTS ATTORNEY IN STAFFORD, TEXAS

Whether you are an employer who needs to draw up or enforce a non-compete agreement or an employee considering entering into a non-compete agreement, you need to seek legal guidance. Understanding the laws surrounding non-compete agreements and determining the enforceability of these agreements can be tricky.

The employment law attorney at The Parzivand Law Firm, PLLC, represents both employers and employees in all matters related to non-compete agreements and other employment contracts. With an office in Stafford, Texas, the law firm takes a personalized approach when helping clients resolve a wide range of issues in employment, including pursuing and defending non-compete litigation. The Parzivand Law Firm, PLLC, works with clients throughout the state, including Sugar Land, Fort Bend County, and the rest of Texas.

WHAT IS A NON-COMPETE AGREEMENT?

A non-compete agreement is a legally binding contract signed between an employer and their employee in which the latter agrees not to engage in a business that competes with the employer’s business during and/or after employment. The agreement, which is also referred to as the covenant not to compete, prohibits an employee from working at a competing organization or starting their own company to be in direct competition with the employer’s business.

Non-compete agreements help employers protect their business interests from current and former employees. These restrictive covenants can be used to prohibit employees from revealing trade secrets or disclosing sensitive information about the company’s customers, strategy, practices, operations, and more.

ARE THEY ENFORCEABLE IN TEXAS?

Generally, yes. Covenants not to compete are enforceable in the state of Texas and are governed by the state’s Covenants Not to Compete Act. Under Texas law, a non-compete agreement is enforceable as long as it fulfills some conditions:

1. The agreement meets the standards of “reasonableness” in terms of limiting the scope of restricted activity, geographical area, and length of time; 

2. The restrictions included in the agreement are reasonable and necessary for the protection of the employer’s confidential information, trade secrets, or other legitimate business interests; and

3. The employee received sufficient consideration in exchange for entering into the covenant (usually, the consideration comes in the form of money or other things of value).

When assessing the enforceability of non-compete agreements, courts determine if the restrictions imposed on the employee are overly burdensome. For example, if a non-compete agreement says that an employee is prohibited from competing with the employer’s business for 15 years, the agreement might be deemed unenforceable.

If you have questions about the enforceability of non-compete agreements, get legal counsel to discuss your specific situation. The employment law attorney at The Parzivand Law Firm, PLLC, assists both employers and employees in drafting, negotiating, and enforcing non-compete agreements.

POSSIBLE REMEDIES & DAMAGES

When an employee breaches a non-compete agreement, employers can enforce the contract by seeking injunctive relief. A court-ordered injunction requires an employee to honor the terms of the contract.

Employers can also pursue other forms of compensation as possible remedies and damages, including:

• Monetary and/or compensatory damages for the harm caused or profits lost as a result of the employee’s breach of the non-compete agreement;

• Punitive damages if the employee’s violation of the agreement was malicious;

• Liquidated damages, which is a specific sum of money that has been agreed upon by the parties when signing the agreement; and

• Compensation for the legal fees and court costs caused by pursuing litigation.

Keep in mind that specific factors must exist for an employee to violate a non-compete agreement and give the employer grounds to file legal action against the employee.

PROTECTING TEXAS EMPLOYEES

While a non-compete agreement protects an employer’s competitive business interests, it can be overly burdensome on the employee’s ability to find gainful employment and earn a living. That is why it is always best to have an experienced employment law attorney review the non-compete agreement before signing it.

When a non-compete agreement includes ambiguous language or is too broad, an employee may be restricted from pursuing gainful work for years to come. That is why it is critical to review the reasonableness and enforceability of the contract before signing it.

As an employee, you should understand all of the terms and provisions in the contract before signing it because non-compete agreements exist to serve the interests of the employer. If your employer is pursuing legal action against you for allegedly violating the terms of the non-compete agreement, seek the immediate assistance of an attorney.

The Parzivand Law Firm, PLLC, is committed to protecting employees in all matters related to non-compete agreements. The employment law attorney at The Parzivand Law Firm, PLLC, understands how non-compete agreements and other restrictive covenants can unfairly affect an employee’s rights in Texas.