What is a “Reasonable” Non-Competition Agreement?

The the hallmark of enforcement of non-compete agreements in Texas is whether or not the covenants are reasonable.  Generally, a reasonable area for in a covenant not to compete is considered to be the territory in which the employee worked. Furthermore, noncompete agreements barring an employee from working for a competitor in any capacity are invalid. 

Are Surgery Centers’ Non-Compete Agreements Valid in Texas?

In recent years, it has become quite common for surgeons to become part owners of free-standing ambulatory surgery centers in Texas. Often, their purchase of the ownership comes with the strings attached – a requirement that they perform a certain number of surgeries at that particular ACS and that they do not compete with the ACS within a certain geographic radius.

What is a Reasonable Geographic Area for Physician Non-Compete Agreements?

There is no “rule of thumb” about what geographic non-compete restraints in physician contracts are reasonable, and medical practices need to consider what geographic restraints they need to put in place in order to protect a legitimate business interest, such as confidential information, trade secrets, goodwill, or patient base.

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