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Overall, non-compete agreements can be enforceable in Texas, but they must be reasonable and designed to protect the employer's legitimate business interests. It's also worth noting that certain professions are exempt from the Texas non-compete law, including physicians, attorneys, and licensed clinical social workers.
Under Texas law, a covenant not to compete is only enforceable if it is ancillary to or part of an otherwise enforceable agreement and it contains reasonable limitations regarding time, geographical area, and scope of activity.
In California, it's illegal to enforce non-compete agreements that put limits on an employee's future job prospects. ing to California Business and Professions Code Section 16600, any contract that restricts an individual from ?engaging in a lawful profession, trade, or business? is null and void.
California law bars covenants not to compete in nearly all circumstances. In Edwards v. Arthur Anderson, the California Supreme Court determined that the law should be read strictly, and not only void the ?unreasonable? noncompete clause, but all noncompete clauses other than those explicitly allowed in the code.
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.
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.
Some potential ways to get out of a non-compete agreement in Texas include the following: Negotiate with the employer to modify the terms of the agreement. ... Challenge the enforceability of the agreement in court. ... Wait for the agreement to expire. ... Seek a waiver or exemption from the agreement.
Although governed by individual state laws, common factors include whether the employer has a legitimate interest to protect; whether the geographic scope prevents the worker from making a living; the length of restriction; whether the agreement prevents workers from doing different work from what they are doing; and ...