Texas Non-Compete in Severance Agreement: What You Need to Know
If you are an employee in Texas and have been offered a severance agreement, it is crucial to understand whether it includes a non-compete clause. A non-compete agreement is a legal contract that restricts a departing employee from working for a competing company or starting a similar business for a specific period in a specific geographic area. In Texas, non-compete agreements are enforceable, but there are certain rules that employers must follow.
The Texas Covenants Not to Compete Act governs non-compete agreements in the state and sets out specific requirements for them to be enforceable. The Act requires that the non-compete agreement must be:
1. Ancillary to or part of an otherwise enforceable agreement.
2. Consistent with public policy.
3. Reasonably limited in time, scope, and geography.
4. Not imposing an undue burden on the employee`s ability to earn a living.
If the non-compete agreement in the severance agreement meets these requirements, it is enforceable in Texas. However, if the agreement does not meet these requirements, it may be found unenforceable.
It is essential to review the non-compete agreement in the severance agreement carefully. It is recommended that you consult an experienced employment lawyer before signing any non-compete agreement. A lawyer can assess whether the non-compete agreement meets legal requirements and protect your rights and interests.
If you violate the terms of the non-compete agreement, your former employer can seek injunctive relief, damages, and attorneys` fees. The consequences of violating the non-compete agreement can be severe and affect your ability to work in your chosen field.
In conclusion, if you are offered a severance agreement in Texas, it is crucial to review the non-compete clause carefully. Non-compete agreements can limit your job prospects, and you must understand your rights and obligations. Consult an experienced employment lawyer to protect your interests and ensure that the non-compete agreement meets legal requirements.
