Non-Compete Agreement

[eastxhunter]

I had to sign one similar to that with my current employer. My research told me that they really don’t hold much water and are hard for the ex employer to do anything about. If the “area” isn’t a specific distance then it for sure won’t hold up.

Welllllll - matters who you working for. Have definitely heard of Halliburton goin after BD guys after they left.

[WTucker]

Is the size of the “area” specified?

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[Grant2]

I would never agree to sign anything like that just my opinion. Would not want to get fired knowing I signed that and give them the right to treat you like a dog knowing you signed it. If your good enough for them to make you sign it just work for yourself.

[HOOKNBULLET2]

I’ve been around them for years. Would never sign one unless I was compensated during the non-compete period. It is a job seekers market. Unemployment is a choice these days. Employers are desperately seeking good qualified employees.

As a minimum, I would request your base salary during the non-compete period.

[CEO]

I signed one that was 6 months and had something like a 200 mile enforcement. Two years is a long time, especially in any type of specialty field or niche. Long enough that some employers may not want to hire someone who had been out of the game that long.

[bmac]

Non-Compete Agreement

Maybe you should see if they will amend to if you leave on your own accord and not terminated for anything besides gross negligence then it holds. Seems unfair they can fire you and then you are stuck to two years in a NCA. Also, seems odd that that was not upfront prior to you accepting offer and waiting to spring it once you accepted. Maybe see if they will better define competitors as that could be really broad in some industries.


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[hopedale]

OP,

Best thing you can do is speak with an Attorney that works in employment law for Texas.

First company i went work for in Texas had a standard non-compete contract. Per my Attorney it lacked a lot of things Texas law required to be up-held in court.

Now, that said, I've had non-compete contracts given to me that he said would hold up. I made sure that had they let me go for any reason the non-compete was null and void.

Again, I'd advise you to get with an attorney, so you don't find yourself on the short end of a stick.

[Hammerdown15]

OP,

Best thing you can do is speak with an Attorney that works in employment law for Texas.

First company i went work for in Texas had a standard non-compete contract. Per my Attorney it lacked a lot of things Texas law required to be up-held in court.

Now, that said, I've had non-compete contracts given to me that he said would hold up. I made sure that had they let me go for any reason the non-compete was null and void.

Again, I'd advise you to get with an attorney, so you don't find yourself on the short end of a stick.

This is really the best advice. Texas law is rather specific on what must be included in covenant language to be enforceable. I work with non-competes regularly and ours are usually enforced and are always upheld but our General Counsel is a bona fide expert on non-competes.

Just reading the text of that passage alone would have me believing it’s not enforceable since it basically says you cannot work in the county, state, and country. A reasonable judge would probably agree that the restriction isn’t reasonable and the company couldn’t enforce it.




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[J-III]

I have been through this having worked for a company that chose to enforce their non-compete agreements against others at times, and eventually me, when I left after 14 years.

I should preface this next part - I am not an attorney and the the following is not legal advice, simply a recollection of my personal experience.

First misconception is that Texas is a “right to work” state. Although this is a true statement, the short version of the interpretation is that you have the right in the State if Texas to work without being forced to join a union, or something along those lines, and does not allow you any freedoms to work and be released from an agreement.

An employee agreement is absolutely enforceable in Texas, and typically has to meet certain criteria. It must have a time limit, a reasonable jurisdiction (geographical distance), and restrictions regarding future employment. These are typically the items that can be challenged and potentially modified which is more likely than the whole agreement being tossed.

Even if they do lose some or all of the conditions, it can quickly become an expensive process.

If you want the position, try and negotiate the length (6 months to a year maybe) or define the distance to which it can be enforced.

If you are concerned, have an attorney who specializes in these agreements take a look and share their opinion.

End the end the opportunity may be worth it.

I would also make sure that the agreement is not enforceable if you are terminated for reasons other than violation of company policy (just cause).

In my case, I chose to test the waters and see if they really wanted to fight it, once they made it clear they would. I took an opportunity with a company that allowed me to work within the restrictions of the agreement.

Just read and understand what you are signing either way.

Good luck!

[trophyhunter01]

NCs can be binding and don’t forget most companies of any size have legal in house or on retainer and can make you need to get a layer to get out from under the legal paperwork they can tie you up with, got a friend going thru this now. Not fun.

[3under3]

These are becoming standard procedure for most medium to large companies. There is probably a clause that says that if any part is unenforceable the remainder of the contract is enforceable. A judge may strike the area you can’t work but agree to the term or vice versa. Long and short is neither will you or a future employer want to test the legal merits unless you have an extremely special set of skills and high salary. You may be be able to negotiate an upfront separation agreement if you are very specialized that will compensate for the time period you will not be employed in your field. If not I would recommend that you make sure the new company is where you want to be long term.

[WTucker]

I signed one that was 6 months and had something like a 200 mile enforcement. Two years is a long time, especially in any type of specialty field or niche. Long enough that some employers may not want to hire someone who had been out of the game that long.

Yes it is, and that is exactly what this is. A specialty/niche field.

OP,

Best thing you can do is speak with an Attorney that works in employment law for Texas

I have considered this. Thanks.

[Mike]

OP,

Best thing you can do is speak with an Attorney that works in employment law for Texas.

First company i went work for in Texas had a standard non-compete contract. Per my Attorney it lacked a lot of things Texas law required to be up-held in court.

Now, that said, I've had non-compete contracts given to me that he said would hold up. I made sure that had they let me go for any reason the non-compete was null and void.

Again, I'd advise you to get with an attorney, so you don't find yourself on the short end of a stick.

This is good advice. I have seen some not hold water and others that are iron clad documents. I have seen guys leave or get terminated and nothing happen and I have seen companies go after individuals after they've been terminated or just left for other opportunities. I have seen a company buyout and 10 days into the merger a person leave for another opportunity in a different field, but since the purchasing company was in that field (pumps), they went after him.

I think you would have to have very strong credentials for a company to pay you after leaving or termination.

Most non competes are pushing the 2 year mark now days, I can't recall the last 6 month term I have heard of, it's been a long time. Most are 2 years for 100 miles and then 1 year for 50 miles. That is measured from the home office you report to or a designated region described on a map.

I know that in La, if that is your territory, once you cross the state line, they can't enforce it any longer, and it must be listed by parish over there, not a distance measurement.

I will add this, if you have an attorney look at it, make sure they are in the employment field. No offense to any JD here but I know several that I call friends and they claim they can't hold water when in fact they have been well written and hold up. There are a few in Beaumont that I could recommend, just PM me.

[TransPecos]

Been through this. Very difficult to enforce in Texas. I laughed when my current employer asked me to sign one. If you have a book of business hold out.

[curtintex]

For those of you saying that they are hard to enforce or not enforceable in a "right-to-work" state....that's just not true. They're held up time and again. There are certain ways that they must be written, there needs to be "consideration" (i.e. $$$) given in exchange, time and distance must be reasonable, but they're held up all the time.

I have a few key people with very reasonable, yet very enforceable non-competes and I have several others with non-solicitation clauses. I don't want to keep anyone from working. I do want to keep them from poaching my employees and my clients. I have enforced both.