Texas non-compete lawyer Keith Clouse notes that the law governing non-compete agreements in Texas may be radically different from the laws governing non-compete agreements in other states. He cautions employees and employers alike to be cognizant of these differences.
Oftentimes an employer will “know” the law of the state the employer is based in. If the employer branches into Texas, the employer may assume that the laws are similar and that what works in the home state will work in Texas, too. But each state has its own laws to address non-compete agreements, and Texas non-compete law is unique. For example, while other states may allow an employer to provide an employee with a financial benefit (such as a bonus) for signing a non-compete agreement, money alone is insufficient consideration for a non-compete agreement entered into in Texas, and a Texas court would not enforce such an agreement.
For these reasons, an employer seeking to expand its operations to Texas should consult with Texas counsel before asking its employees to sign non-compete agreements. Likewise, an individual who is unfamiliar with Texas law should seek counsel prior to signing a non-compete agreement. To speak with Mr. Clouse or with another Texas non-compete attorney, please contact the employment law lawyers at Clouse Dunn Khoshbin LLP at [email protected].
