(512) 553-9390  |  Serving all of Central Texas

Austin Non-Compete Lawyer

Austin Non-Compete Agreement Lawyer

What is a non-compete agreement?

A non-compete agreement is an agreement that limits employees’ rights to continue in their profession for a certain period of time after they separate from their employment. These agreements originally came about to protect employers’ valuable assets, information, or training, but are now common across all job types and circumstances – from CEOs to food service workers.

For example, if you work in the tech industry, you may be exposed to secrets and privileged information at your current job. If you signed a non-compete, you may have jeopardized your right to leave work for a competitor in the same industry. A non-compete is typically very beneficial for the employer, but not the employee or executive.

Non-competition agreements are monopolistic restraints on free trade, period. However, the majority of states (including Texas) have statutory carveouts that allow for their existence and enforcement, but only under limited circumstances.

Ultimately, all non-compete agreements are enforceable only to the extent necessary to reasonably protect the employers’ good will.

Non-competes can harm an employee’s ability to find a new job in their field. While a non-compete may be a smart business decision for a company, it can be a very harmful one for the employee.

Non-compete agreements are enforceable in the state of Texas as long as they meet the requirements of Section 15 of the Texas Business and Commerce Code, as interpreted by the Texas Supreme Court and Courts of Appeals throughout the state.

Are all non-competes valid?

No. A non-compete is a contract, so it must meet the requirements of a contract to be valid. The three elements of a contract are:

The element where issues usually arise in a non-compete is consideration. Issues in the validity of a Texas non-compete may arise where the only consideration for the employee is continued employment, or where the employer failed to provide new trade secrets or confidential information in exchange for the promise not to compete.

What are the terms of a non-compete?

Non-compete agreements usually contain three elements:

Non-compete agreements in Austin, San Antonio, Houston, Dallas, and throughout Texas are only enforceable to the extent their restrictions are reasonable. If your agreement is too long, covers to much turf, or restricts all job activities (whether or not you did that job function in your prior job), your agreement may be over-broad and unenforceable as written. That does not mean you can disregard it – you should consult with an attorney about your rights and options.

I am starting a new job and my employer asked me to sign a non-compete, what do I do?

If you are worried you may be signing your future career away, consult with an Austin non-compete lawyer first! An attorney can review the contract with you and make sure you are agreeing to reasonable terms in the non-compete and negotiate them if not. All non-compete agreements are negotiable. The best time to negotiate is before you sign. If you have competing job offers, but one has a restrictive non-compete, you may be able to negotiable better terms. With non-competes, an ounce of prevention is worth a pound of cure.

I am planning on resigning soon, but I signed a non-compete when I started. I want to find a new job in the same field, is that possible?

If you are in this situation, it would be best to contact an Austin non-compete lawyer before taking further steps. You must review the non-compete you signed and apply the facts to better understand what it will restrict you from doing. If you have any doubts about moving forward from your current job because of a non-compete, it is time to consult with a Texas non-compete attorney.

I left my job a few months ago and have since started a new job in the same field. My old employer is now suing me or threatening to sue me regarding a non-compete I had signed with them. What do I do?

Talk to an Austin non-compete lawyer as soon as possible! There may be information in the non-compete you signed that would make your employer’s case against you very challenging for them. Or, you may be taking actions that are extremely harmful to you. You should consult with a legal professional to help you review and better understand your situation.

I am quitting my job, and I signed a non-compete that said I cannot work for any other company in this industry in Texas. Is this valid?

It depends. Texas courts have ruled that for a non-compete to be enforceable, it must be reasonable in scope. Banning you from working in an entire field in a state as large as Texas may be unreasonable, if for example your recent work was limited to Travis County or the Central Texas area surrounding Austin, Texas. If you find yourself in this situation, you should contact an Austin non-compete lawyer.

What is seen as reasonable for a geographical scope for non-compete?

Non-competes are more likely to be enforced when the agreement does not restrict the employee beyond the area where he or she worked for the employer. Sometimes, that are is measured in a 5 mile radius, but sometimes it is national. The details of each situation are incredible important.

What is seen as a reasonable time frame for a non-compete restriction?

There is no clear-cut answer to this. An unlimited restriction is definitely illegal and unreasonable. Not all non-competes need to specify duration of the agreement, but a court will only enforce them for a reasonable about of time. The reasonableness of a duration usually depends on the industry, the employee’s role in the company, the market of the company, and other similar factors.

What is seen as a reasonable scope of activity for a non-compete?

Again, there is no clear-cut answer here. The courts have generally been less likely to enforce a non-compete which prohibits an employee from working with clients that they had no contact with during their employment. However, it may be reasonable for a company to prevent the employee from having contact with existing clients or prospective clients. A valid non-compete can restrict an employee from working with competitors, but the geographical scope and time limitations must be reasonable.

How is a non-compete dispute resolved?

It varies on a case-by-case basis. Your lawyer will be able to give you an idea of possible outcomes for the case. If you have yet to sign the non-compete, this may be settled by working on the terms of the agreement with your employer.

How Can We Help?

Client Testimonials

Austin Kaplan was indeed, very helpful in resolving a dispute I had with a restaurant, and his team helped as well to connect the dots in order to make this procedure an easy-going succession of discussions with the other party.  From our first meeting, I knew Austin was a trustworthy man who carefully listened and guided me through the steps – a great lawyer who chooses just causes.  Justice was served.

— Sam, Unpaid Wages

It was an absolute pleasure working with Austin Kaplan and his staff.  They are very personable, easily available for questions and procedures, incredibly knowledgeable, and they made a terrible employment experience easy to deal with.  I cannot say enough great things about the Kaplan Law Firm.

— Shelby L.

If you have a tough unpaid overtime case like I did, I recommend hiring Kaplan Law Firm.  Austin worked closely with me throughout my case to make sure I knew what to expect, and to make sure we were both fully prepared.  Austin made sure I was always in the driver’s seat.  He was always professional and dedicated to my case.  We set goals together at the beginning of the case, and by the end, he made sure each of them were met.  If you need a lawyer for a tough case, I recommend Kaplan Law Firm.

— A.E., Unpaid Overtime (FLSA)

Austin represented me in a employment related matter that ended in a satisfactory outcome. I would recommend his firm in the event that you require representation in his area of expertise. The staff is friendly,  responsive, ridiculously helpful.

— Matthew S.

Austin helped out my dad on a employment matter. Within a short time Austin got results and my dad was very happy with the outcome. Austin knows what he is doing I couldn’t recommend him any more.

— Pedro V.

The firm was very quick to help and thoroughly understood my issues. They provided sound, timely advice and helped me achieve a fair settlement.

— Jeff Q.

Austin was impressive and able to accomplish the results in my case. Like me, he is goal oriented, and his approach to my case was not only efficient but extremely effective. If you are looking for a lawyer that will provide personalized attention and help you accomplish your goals efficiently, I highly recommend Austin.

— Richard, Unpaid Overtime (FLSA) / Retaliation

I would like to personally thank Austin and his staff in handling my first time attorney experience. Him and his staff were very polite and very professional. He really took the time to explain everything which made me feel like he really cared. He responded to every email that I had questions and concerns and I got answers. Thankful I had Austin in my corner. Thank you once again for doing an amazing job. I would highly recommend Austin and his team.

— Jenevieve S.

Take Charge of Your Employment Life

Don’t accept the situation your workplace has given you. Learn your rights and protections today.

Contact us today to put together your plan of action. We’re in your corner and will let you know your options.

Get in Touch