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Although Texas recognizes the public policy exception, it is limited to only preventing employers from terminating employees in retaliation for the employee refusing to commit a criminal act on the employer's behalf.
An outside employment agreement establishes company guidelines relating to employees obtaining or engaging in outside employment which may interfere with their primary job responsibilities.
While Texas courts generally disfavor non-compete agreements, they will enforce a non-compete covenant if it is executed for valid consideration, contains reasonable geographic, temporal, and activity restrictions, and protects the employer's legitimate business interests.
What Happens If I Break a Non-Compete Agreement in Texas? If you violate the terms of a legally enforceable non-compete agreement, your employee may ask the courts for an injunction to stop improper competitive activity and pursue actions (such as a lawsuit) to recover financial damages.
A purchasing agent hires his brother-in-law to provide vending services to the company lunch areas. An employee starts a company that provides similar services to similar clients as those of her full-time employer. This is especially a conflict of interest if her employer has had her sign a non-compete agreement.
Finally, the employer's conduct (e.g., unclean hands, or conduct inconsistent with enforcement) can sometimes provide the employee with a good way out of a noncompete. In order to get out of a non-compete agreement, you will need to prove that the non-compete agreement is unenforceable.
1. There must first, in every instance, be a separate enforceable agreement beyond the noncompete restriction itself. In other words, a standalone noncompete procured in return for a sum of money or other compensation is simply void as against Texas public policy. That is a naked restraint that will not be enforced.
An employee may accept outside employment as long as their outside employment and volunteer activities will not create a real or perceived conflict of interest or a conflict of commitment.
Conflict of interest in the workplace refers to when a staff member takes part in an activity or relationship that benefits them and not their employer. In other words, each party's personal gains are at odds with each other.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.