Non-Compete Agreements Related to a Sale of Business

In Texas, a 5 to 10 year non-compete agreement related to a sale of business is the norm. n addition to the non-compete restrictions in the sale documents, those sellers who stay employed by the buyer after the sale often sign a second non-compete agreement as part of their employment package, which does not kick in until after their employment with the buyer terminates.

How To Prevent Poaching of Your Business’s Employees

Many companies have been taking advantage of the economic turmoil caused by the pandemic to poach employee talent that they otherwise would not have been able to recruit or afford. Companies that have experienced layoffs, furloughs, salary reductions or bonus freezes, are particularly vulnerable to raiding attempts by their competitors.

COVID-19 Texas Employer Guide – Are Non-Compete Agreements Still Enforceable?

In Texas, the reason for termination of employment – whether it was for cause, without cause, a layoff, a reduction in force, or any other reason – does not affect the enforceability of a non-compete agreement. Therefore, employers should not assume that non-competition agreements are no longer enforceable and must carefully approach enforcement of such agreements against departing employees as well as the hiring of new employees who may be still bound by non-competition agreements with their former employers. 

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