Welcome to Texas! Be Careful Before You Sign a Non-Compete.
Executives whose companies have elected to move to the Lone Star State need to be aware that non-compete laws vary widely across state lines.
March 27, 2015
(press release: cdklawyers) // Dallas, Texas, United States // Keith Clouse Dallas employment attorney While the nation has been mired in a financial crisis, Texas escaped relatively unscathed. Its strong economy has encouraged many companies to contemplate—and act on—plans to move to Texas. Executives whose companies have elected to move to the Lone Star State need to be aware that non-compete laws vary widely across state lines. Therefore, before an executive signs an agreement to move, the executive needs to have any proposed non-compete terms vetted by a Texas employment lawyer.
An executive who works in a state where non-compete agreements are unenforceable (such as California) may be surprised at the restrictions that can be imposed on an executive’s right to work in Texas. Even executives who work under valid non-compete agreements in other states may be surprised at how Texas’s laws differ from their home states’ laws. But, all executives moving to Texas need to understand that Texas trends towards greater enforceability of these contracts. That said, courts will only enforce restrictions on an executive’s right to work if those restrictions are “reasonable.” What is reasonable, of course, depends upon the specific facts of an executive’s employment situation. A Texas non-compete lawyer can evaluate a proposed non-compete agreement, educate an executive on what the terms mean, and negotiate a better deal if necessary.
This article is presented by the Dallas employment attorneys at Clouse Dunn LLP. To speak to an employment law attorney about a non-compete agreement, send an email to firstname.lastname@example.org or call (214) 239-2705.