Breaking a Non-Compete Agreement in Texas: What You Need to Know
A non-compete agreement is a legal contract between an employer and an employee that restricts the employee`s ability to work for a competitor or start their own competing business for a certain period of time after leaving the employer. In Texas, non-compete agreements are enforceable if they meet the state`s specific requirements.
However, situations may arise where an employee may want to disregard or break the non-compete agreement. This could be because the employee has found a better opportunity, wants to start their own business, or simply disagrees with the terms of the agreement. Regardless of the reason, breaking a non-compete agreement in Texas can have serious legal consequences.
Legal Consequences of Breaking a Non-Compete Agreement in Texas
If an employee breaks a non-compete agreement in Texas, they may face legal repercussions. The employer can take legal action and seek monetary damages, injunctive relief, and even sue the employee for breach of contract. If the employer is successful in its lawsuit, the employee may be required to pay monetary damages, including any profits made while violating the agreement and attorney fees incurred by the employer.
In addition, a court may issue an injunction against the employee, which is a court order prohibiting them from engaging in any activities that violate the non-compete agreement. Violating an injunction is a serious legal offense that could result in fines, imprisonment, or both.
Exceptions to Non-Compete Agreements in Texas
There are certain exceptions to non-compete agreements in Texas. For instance, non-compete agreements are not enforceable if the employee is terminated without cause, or if the employer breaches the agreement first. Additionally, non-compete agreements are not enforceable if the employee is a low-wage worker, earning less than $15.00 per hour or $31,200 per year.
Courts also consider the scope and duration of the non-compete agreement. If the agreement is too broad, covering a wide range of industries or a lengthy period of time, a court may consider it unreasonable and unenforceable.
What to Do if You Want to Break a Non-Compete Agreement in Texas
If an employee wants to break a non-compete agreement in Texas, they should consult with an experienced employment law attorney. The attorney can review the agreement and advise the employee on their legal options. In some cases, the attorney may be able to negotiate a settlement with the employer that allows the employee to work in their chosen field without violating the non-compete agreement.
Conclusion
Non-compete agreements in Texas are enforceable if they meet certain criteria. Breaking a non-compete agreement can have serious legal consequences, including monetary damages, injunctive relief, and even imprisonment. If an employee wants to break a non-compete agreement, they should consult with an experienced employment law attorney to understand their legal options and protect their best interests.