In Texas, non-compete agreements that relate to the practice of medicine must meet certain statutory requirements in addition to the consideration and reasonableness conditions discussed here.
A confusing, ambiguous, or imprecise non-compete agreement will yield poor results in court. In other words: garbage in, garbage out.
How enforceable is a non-compete? Generally speaking, non-compete agreements are enforceable. Is a non-compete valid if you are fired? Usually, yes. Do non-compete agreements hold up? When written correctly, yes. How long does a non-compete agreement last? As a general rule, non-compete agreements that last two years or less are considered reasonable.
More and more states are amending their non-compete statutes to make them more employee-friendly. This trend, spurred by the White House report on the effect of non-compete agreements on competition and the revelation that some of the largest employers, like Jimmy John’s and Amazon, were requiring their sandwich-makers and warehouse employees to sign non-compete agreements, has continued into 2018.
Texas courts have issued several interesting opinions in 2017 regarding Texas non-compete law, explaining and defining when the Texas Covenants not to Compete Act applies and clarifying procedural mechanisms and remedies in non-compete disputes.
This year, California, Illinois and Nevada amended their non-compete statutes to help protect employees’ right to change employers. Idaho, Maryland, Massachusetts, New York, and Washington considered various amendments, but were unsuccessful in signing them into law, which means they will probably try again in 2018.