Texas executives may be concerned about the potential effect a noncompete provision may have on their professional future. This is often a part of an employment agreement, and it typically includes language that prevents the executive from taking work with competitors or launching an independent business for a certain period of time after leaving the firm. While employers tend to favor these agreements in order to protect trade secrets, intellectual property and other insider knowledge, they can pose a significant barrier for employees who want to move on.
Whether you're an employer looking for new hires or a worker considering new employment opportunities, it's important to have a general understanding of current state and federal employment laws. These laws often change, and if you sign any type of agreement without fully understanding its contents and any obligations or responsibilities set therein, you could wind up facing significant legal trouble if something goes awry down the line.
If you ever participated in a three-legged race, you know how much fun they are. With one leg tied to the leg of a partner, you race for the finish line. When you and your partner are in synch, you move like one, taking long strides and using each other's momentum to carry you forward. But when things go wrong, they go very wrong. An uncooperative or ill-fitting partner can leave you lying in a heap while others pass you by.
Your business is doing well enough that you are ready to begin expanding your staff. This is a difficult decision because more people on board means you have to rely on others, delegate duties and promote your workers. However, if you want your business to grow, you have to place a certain amount of trust in employees.
When a Texas company is sold, the purchaser often requests the seller's owner to enter into a noncompete agreement. These agreements are usually limited to a specified number of years and to geographic locations in close proximity to the company. In late 2016, a Texas appellate court ruled on the enforceability of one such agreement.