Labor & Employment Law

Scope of Noncompete Agreements in Texas

By Robert Wood

Assuming a non-compete agreement in Texas is worded properly and supported by adequate consideration, the next question is whether the restrictions contained in the agreement are reasonable.  Texas courts have routinely held that the scope of the restrictions should bear some relationship to the activities that the employee performed for his former employer.  For example, if an employee performs work for his employer only in the Dallas/Fort Worth area, a non-compete agreement that keeps him from competing with his employer anywhere in the State of Texas might be too broad.  The facts of each case must be assessed on their own merits, obviously.  However, in considering whether a particular noncompete agreement is reasonable, Texas courts have consistently focused upon where an employee performed his job duties for the employer.

Full post as published by Texas Non-Compete Law Blog on April 16, 2010 (boomark / email).