Texas employees who refuse COVID-19 vaccine may be terminated. If they have a non-compete agreement with their employer, assuming the agreement meets the appropriate legal requirements, i.e., among other things, is reasonable, has geographic, scope, and term restrictions, and is supported by consideration, the fact that the employee was terminated or quit over the COVID-19 vaccine requirement, is not going to make the agreement invalid.
Tag: Non-Compete Agreements in Texas
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.
How to avoid a non-compete lawsuit?
Many employees assume that if they were let go their non-compete agreement automatically becomes null and void. This is not true, however, in a lot of states, and this assumption can turn out to be very costly for an employee. It is much better to plan ahead and make sure that the departure from the former employer is as smooth as possible, and to avoid doing some of the things described above that often trigger a non-compete lawsuit.
How to Get Out of a Non-Compete Agreement
While getting out of non-compete restraints is not always possible, some of the most common ways that employees – and employers that want to hire them – can overcome such agreements include the following: (1) lack of consideration; (2) unreasonable restraints; (3) no legitimate business interest, and other defenses.
Are Non-Compete Agreements Enforceable if the Employee is Terminated?
Are non-compete agreements enforceable if the employee is terminated? The answer depends on which state the employee is in, as each state has its own laws regarding the enforceability of non-compete agreements.
A Texas Court Refuses to Enforce a Non-Compete Agreement In a Case Involving Every Employer’s Worst Nightmare
Last week, a federal court in Texas refused to enforce a company’s non-compete agreement against four key employees who started a competing business because the agreement was missing a key term – the end date. The above situation can be avoided through simple practice of: (1) knowing what is in the company non-compete agreements; (2) making sure all the key provisions required by the relevant statutes are included; and (3) periodically updating non-compete agreements so that they are compliant with the relevant state law.