With a non compete agreement your employee agrees not to go to become employed by a competitor or open their own business in a particular trade for a defined period of time. The reason this contract is enforceable is because an employee may have confidential information about their employer that could give a competitor the upper hand. For example, an employee may be privy to sensitive information such as trade secrets, marketing plans, client lists and upcoming products.

Most non compete agreements are specific in the amount of time the agreement will be in effect. For example, a non compete agreement may stipulate that an employee may not work in a particular field for a definitive length of time, a geographical area or type of activity. This agreement protects the employer from a competitor gaining advantage because sensitive information an employee may learn while working for the company.

There are certain restrictions to non compete agreements that must be followed. For example, a business must stipulate the type of work that cannot be done when your employment is terminated, how long you cannot work for a competitor and what information cannot be shared with competitors. This agreement must definitively set forth restrictions in order for the contract to be legally binding.

Their are pros and cons that should be weighed carefully when deciding if you should employ non compete contracts when hiring new employees. The pros help protect your company from an ex-employee sharing your information with competitors; however, it also can cause an employee to withhold suggestions to improve the company because when they leave the company, they will not be able to take their ideas with them to their new job.

As you can see there are many things to consider when it comes to non compete agreements. Before deciding to use Non Compete Agreements in Texas for your business, carefully consider what information will be privileged, how long of a time frame the non compete will be enforceable for and how large of a geographical area will be included in the contract.