Dust Off Your Non-Compete Agreement


Texas courts now lean toward enforcing non-compete and non-solicit agreements. But they may push back on how far your agreement can go.

Your restrictions must be reasonable. If you've demanded too much of your ex-employees, a court will ding you. The court will shave down or "reform" your restrictions to make them reasonable. You'll get only an injunction to stop the ex-employee from breaking the rewritten agreement.

Even worse, the court won't show you the money. No money damages can be awarded on an unreasonable non-compete or non-solicit until after the court has "reformed" your restrictions. And that won't happen until sometime after you've filed a lawsuit. You would walk away empty-handed on lost profits for your customers the ex-employee stole before you could launch your lawsuit and the court rewrites your restrictions.

Your only option for money damages would be to prove the ex-employee has used your business secrets against you. Otherwise, your already stolen customers would be water under the bridge.

Please read the rest of the article for full details.

LOADING PDF: If there are any problems, click here to download the file.