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Will a non-compete signed document in Texas hold up in court? Or in Texas do you have the right to work where you want?
Anonymous2 views3 answers
I signed a non-compete for a company that I worked for stating that I could not work at a related business within 10 miles for 1 year upon leaving.
I am trying to figure out if this non compete agreement could be used in court. Or in the state of Texas does it not apply? I heard from someone that any individual in the state of Texas has the right to work where they want to and that document is just a way to scare people.
Covenants not to compete in Texas are generally enforceable if they are supported by adequate consideration, and are reasonable in scope (market and territory involved) and time.
To know whether the noncompete is enforceable or not requires a careful analysis of its terms, and factual information from the client, particularly where the employment was at will. You should consult with a Texas attorney that is experienced in this field of business agreements.
I do not know Texas law, but as a general rule, a non-compete agreement will be upheld, even in a "right to work state," if it is deemed reasonable with regard to time and distance. A distance of 10 miles and time limit of 1 year is not unreasonable.
If the prohibition restricted you from working in the same industry for more than 3 years and in the entire state of Texas or the United States, that would be unreasonable.
"Right to Work" generally means that one can, absent a union contract, be hired and fired at will, subject to damages if a contract provides for guaranteed payments or the firing is a result of discrimination.
