Collin Texas Covenant Not to Compete for a Construction Business - Noncompetition

State:
Multi-State
County:
Collin
Control #:
US-0398-WG
Format:
Word
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Covenant Not to Compete for a Construction Business - Noncompetition
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FAQ

The employer has no legitimate interest to enforce the agreement. The employer is overreaching legitimate business interests. The agreement restricts competition for an unreasonable amount of time. Alleged confidential information has been disclosed to the public or is readily available to them.

A covenant not to compete, also called a "nompete agreement" or "non compete clause," is an agreement where one party promises not to compete with the other party in a specified area for a certain period of time. A covenant not to compete can be found in an employment contract or a sale of business contract.

An enforceable covenant not to compete must be: (1) in writing; (2) made a part of the employment contract; (3) based on valuable consideration; (4) reasonable as to time and territory; and (5) designed to protect a legitimate business interest of the employer.

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.

In deciding whether to enforce a non-competition agreement, the court will balance the need to protect the employer's legitimate business interests with any burden that enforcement of the agreement would place on the employee. Non-competition agreements must be reasonable in duration and scope.

California - Non-compete clauses are not enforceable under California law. However, LegalNature's non-compete agreement may still be used to prohibit the employee from soliciting customers and other employees away from the employer.

A covenant not to compete will be deemed valid if it only restricts the employee's opportunity to compete while they remain employed with the employer requiring the covenant, but imposes no restrictions on the employee once they separate from the employment.

Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.

Non-Compete Agreements: What's Negotiable? Other key terms of a nondisclosure agreement may be open to negotiation, especially if the employer uses the same boilerplate language in every contract.

A covenant not to compete has three elements: (1) a limitation on the work that may be pursued by the employee, (2) a definite time, and (3) a definite geographical area. The time and geographical restrictions are usually straightforward; the limitation on work is a little more complex.

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Collin Texas Covenant Not to Compete for a Construction Business - Noncompetition