Do I have to worry about a non-compete if I quit my job?

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Yes, if you are in Texas. There has been a lot of buzz about federal government banning all non-compete agreements (not likely to pass) and some states have actually outlawed such agreements. However, Texas is not one of them. And since each state has their own rules about non-competes, in Texas, these agreements are still very much enforced when they are reasonable.

There are, of course, ways to defeat non-compete agreements, however, anyone who signs a non-compete agreement without reading it or without understanding that it may be enforceable, is acting at their own peril. Some of the defenses to non-compete agreements include:

  1. Employee was not provided the necessary “consideration” in return for the promise not to compete;
  2. The restraints are patently unreasonable in time, geographic area, or scope;
  3. There is no legitimate business interest in requiring an employee to sign a non-compete agreement;
  4. The agreement has expired;
  5. The agreement is too ambiguous to be enforceable;
  6. The agreement is missing a key term, making it unenforceable;
  7. The employer has not complied with its obligations under the agreement;
  8. The agreement is superseded by another agreement;
  9. The agreements fails to meet specific requirements of the state whose law governs the agreement;
  10. The agreement violates public policy or imposes undue hardship on the employee.

However, the application of these defenses depends on the exact language of the non-compete contract, the facts surrounding the execution of the contract, and the particular court or judge in front of whom the request to enforce the contract ends up.

CONCLUSION: If you are in Texas, do not sign a non-compete agreement without reading it, understand that it may be enforced by an employer, and, consult with an attorney before signing the agreement or when departing your employment.

Leiza Dolghih is the founder of Dolghih Law Group PLLC.  She is board certified in labor and employment law and has 16+ years of experience in commercial and employment litigation, including trade secrets and non-compete disputes. You can contact her directly at leiza@dlg-legal.com or (214) 531-2403.

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