A Business Lawyer in College Station Discusses Covenants Not to Compete

Covenants not to compete, also known as non-compete clauses, are often included in contracts for employment. The purpose is to protect the employer from an employee leaving the company and competing with it. As a business lawyer in College Station will explain, such covenants must meet explicit rules in order to be deemed valid in court.

Protections Non-Compete Covenants Offer

Employers are understandably loath to allow an employee access to their training and client base, only to have the individual leave and use this material in competition. Non-compete clauses, as your business lawyer in College Station will amplify upon, disallow former employees from soliciting customers, using company operating procedures, and even working in a specific trade. These clauses are generally limited by time and geography. It would be unnecessary, for instance, to expect a former employee who is moving to a different part of the state not to work at a particular job that, because of its distance, is not likely to take sales away from the original employer. 

General Restrictions

Texas laws generally restrict the scope of non-compete covenants. Indeed, prior to 1989, when the Covenant Not to Compete Act was passed, these agreements were rarely upheld in courts. Even today, as your business lawyer in College Station will tell you, these covenants are binding only when an agreement between employee and employer is explicit, and when a mutual consideration is satisfied.

For Assistance from a business lawyer in College Station

If you need assistance with developing a contract with a non-compete clause, or have another business law concern, a business lawyer in College Station can help. Peterson Law Group will provide you with the highest quality representation. Call us today at 979-703-7014.