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Commercial Litigation FAQ

Can My Former Employer Stop Me Working for a Competitor?

How Non-Compete Clauses in Texas May Affect Your Case

The non-compete clause (NCC), or covenants to not compete, are increasingly being used in Texas and across the United States. The agreement serves to protect a company's interests when the business involves confidential trade secrets and high-stakes transactions, such as in technology.

The enforceability of the non-compete agreement depends on its terms and other circumstances. If an employee signs an NCC, they agree to avoid pursuit of a similar profession that competes with their current employer. Under Texas law, the non-compete agreement is enforceable if it is "reasonable" in its scope. Our state's courts have routinely upheld non-competes that aren't overly broad in the time and geographical restrictions they place on the employee and that are crafted narrowly to protect the company's legitimate business interests.

Employees must be careful when entering into non-compete agreements because a clause that is too broad may prevent them from obtaining future employment. In general, companies should only ask employees to enter into non-compete agreements if it is necessary to "protect legitimate business interests."

For instance, if you are a Houston medical device salesman, and the non-compete prohibits you from working anywhere in Texas for the next 20 years, a court may very well refuse to enforce it. On the other hand, a non-compete restricting you from working in medical device sales for a competitor within the Houston metropolitan area for a two-year period is more likely to be found to be reasonable. These agreements usually are enforced through injunctions. Damages and attorney fees may also be available to the company seeking enforcement.

If you have questions about a non-compete agreement, call Arnold & Itkin at (888) 493-1629. Your consultation is free!

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  • $8 Billion Top 3 Largest Jury Verdict in U.S. History Arnold & Itkin LLP tried a Risperdal case against Johnson & Johnson for failing to warn about one of the drug’s most damaging side effects: gynecomastia. Our skill, hard work, and dedication resulted in the third-largest jury verdict ever obtained ...
  • $357 Million Largest Workplace Accident Settlement in Texas history Arnold & Itkin LLP secured a massive nine-figure settlement against a transnational corporation for a workplace incident. The settlement set a Texas record for being the largest personal injury settlement in the state’s history.
  • $222 Million Record-Breaking Verdict for Widow Our firm won $222 million for a woman who lost her husband in an industrial accident caused by a faulty valve. We took the case to trial because the at-fault company refused to take responsibility. The jury saw through the corporate lies and double ...
  • $205 Million Confidential Settlement Obtained for Numerous Clients Arnold & Itkin reached a record $205,000,000 settlement on behalf of clients after several years of hard-fought litigation. The case settled just before trial was set to begin.
  • $171 Million One of the Largest Confidential Settlements in History Arnold & Itkin worked over the course of several years to represent clients in a case that many other law firms turned down. In the end, we were able to obtain a record-setting confidential settlement of $171 million.
  • $117 Million Largest Single-Event Personal Injury Verdict in Louisiana History Arnold & Itkin represented a pregnant woman who experienced stomach pain and called Acadian Ambulance. The driver of the ambulance drove the ambulance into the back of a sugar cane truck causing the plaintiff's spine to be severed at T4 and for her ...
  • $116 Million Confidential Settlement Arnold & Itkin LLP negotiated a massive nine figure settlement on behalf of their clients after several years of hard fought litigation.
  • $110 Million Record Settlement Achieved for Victims of Defective Products Arnold & Itkin obtained a record settlement for individuals harmed by defective, dangerous products. The result exemplifies our commitment to clients and justice for those seriously injured by the conduct of others.
  • $105 Million Record Settlement for Dangerous Product Victims Arnold & Itkin’s legal team helped represent those harmed by dangerous products. We were successful in recovering a $105 million settlement.
  • $97 Million Massive Settlement Secured for Refinery Workers Arnold & Itkin is proud to share that after months of preparation for trial, our firm was able to secure a huge settlement for clients who were injured in a refinery fire. Find out more now.
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“Algunos accidentes nos afectan durante el resto de nuestras vidas. Cuando Oscar, un trabajador de una refinería, sufrió quemaduras severas en un accidente, supo que tenía que actuar de manera rápida para protegerse a él mismo y a su familia. Infórmese sobre lo que sucedió cuando llamó a nuestro bufete en esta video entrevista.”
Oscar Work Accident Victim

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