Competition Non Competition With No One In San Antonio
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FAQ
On August 20, 2024, the US District Court for the Northern District of Texas in Ryan LLC v. Federal Trade Commission issued an order blocking the Federal Trade Commission (FTC) rule banning all post-employment noncompete agreements with workers from taking effect on September 4, 2024.
Under Texas law noncompete agreements can be enforceable if: The noncompete provision is part of an otherwise enforceable agreement. The non-compete requirement is supported by valid consideration (consideration meaning something of value provided to the employee).
What happens if you break a non-compete in Texas? If a covenant not to compete is violated, a court may award the employer monetary damages and/or injunctive relief, but it will generally not be able to recover its attorney's fees.
While your non-compete would still potentially be enforceable, non-competes typically would only prevent you from working for a competitor. Since you indicate that the company that you are taking a position with is not a competitor, but is a customer, it is unlikely that your non-compete would apply.
The Non-Compete Rule would prohibit employers from entering into or otherwise enforcing non-compete clauses and some similar agreements, beginning on September 4, 2024. It would also require employers to notify workers subject to such agreements that their agreements are no longer enforceable.
In Texas, a court has the ability to modify – or even nullify – the non-compete if the court determines that it is not reasonable. The courts are given wide latitude to reform a non-compete if the court believes the scope of activity, duration, or geographic area are too restrictive.
Employers do enforce non-competes, but the extent varies. Some employers rigorously enforce these agreements to protect their business interests, while others may choose not to pursue legal action.
In Texas, a court has the ability to modify – or even nullify – the non-compete if the court determines that it is not reasonable. The courts are given wide latitude to reform a non-compete if the court believes the scope of activity, duration, or geographic area are too restrictive.
