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People often ask me, “When I’m presented with a non-competition agreement, is this agreement enforceable?” This is a common question, and surprisingly, nine times out of ten, the agreement will be enforceable. Texas law is clear: if certain standards are met—and most agreements include these standards—they are likely to hold up in court.
The key factor is whether the agreement is supported by consideration. This could be a promise to provide confidential information, trade secrets, or similar benefits. In our practice, we evaluate whether an enforceable agreement is subject to modification. In Texas, a non-competition agreement must be reasonable in three main aspects: the scope of the activity to be restrained, the geographical area covered by the prohibition, and the duration of the restriction.
The overarching principle is that a non-compete will only be enforced to the extent reasonably necessary to protect the employer’s legitimate goodwill and business interests. In simpler terms, if the agreement isn’t reasonable—and we can often find ways to show it isn’t—we can help modify or address it to better suit your needs.
Houston, TX employment law attorney Gregg M. Rosenberg talks about the enforceability of noncompetition agreements. He explains that non-competition agreements are generally enforceable in Texas if they meet specific legal standards, which most do. Key factors include whether the agreement is supported by consideration, such as access to confidential information or trade secrets, and whether it is reasonable in scope, geographical reach, and duration. Non-competes are enforceable only to the extent necessary to protect an employer’s legitimate business interests. If an agreement is deemed unreasonable, it may be subject to modification, and the lawyer’s practice can assist in addressing or improving such agreements.