Considering Non-compete Agreements

In today's tough job market, it may be difficult to resist the temptation to leap at the first job offer that comes your way. After all, you may have been unemployed for months and your financial resources might have been drained, so the thought of a paycheck is heavily on your mind. But when there are conditions attached to your prospective employment it is important that you take the time to consider how the decision to sign on the dotted line might affect your long-term future and plans.

Non-compete agreements might seem harmless enough when you are in need of employment, but they can be stifling if you eventually need to seek a position elsewhere. For help in determining the fairness and enforceability of a non-compete agreement that you are being asked to sign, contact the Houston employment lawyers of the Ross Law Group at 713-482-6910.

Key Factors

One of the common shortcomings we have seen in our experience reviewing non-compete agreements is that employers often attempt to compel employees to surrender their rights without offering anything in return. These agreements fail to meet the Texas standard of reciprocity, under which both parties should be the recipients of benefits clearly specified by a larger contract. When you are viewing a non-compete agreement, contemplate the following:

• Is it relevant? – The only time when non-compete agreements should be invoked is when there is a valid reason to use them. This is typically determined by the value of the training and information you receive if you were to take it elsewhere. Software companies typically have ample basis for crafting non-compete agreements, but fast food restaurants do not.
• Is it reasonable? – Any attempt to effectively bar you from your own trade is likely unenforceable. For example, prohibiting you from working for another company within 10,000 miles is dubious. The same is true if an agreement specifies too many years of non-service. Few courts would honor non-compete agreements that outlast the 14 and 20 year patent limitations.
• What do I get? – Look for clearly specified rewards, and weigh them against potential losses if you cannot work in or around Houston for several months or years.

Contact Us

Your employer likely had an attorney craft the document before you, so you should have one review it before you agree. Contact the Houston non-compete lawyers of the Ross Law Group today at 713-482-6910.