Non-Compete Clauses

Non-compete clauses are common in employment contracts, particularly in employment contracts dealing with executive or management positions or radio stations. Many non-compete clauses have been determined to be invalid.

A covenant not to compete (CNC) or non-compete clause is a term used in contract law. In this clause or agreement, one party, typically the potential employee, agrees to not look for a similar position or a job in a similar field of employment upon completion of the job in question.

Non-compete clauses are similar in most respects to other contract requirements, including the issue of consideration. The concept of consideration means that each party must receive something and must provide something by signing the contract. For example, in a CNC, a signing bonus or elevated pay scale can act as consideration offered by the employer to the employee to seal the deal.

CNCs exist because many employers fear that if an employee quits his or her job, he or she will take valuable information and either start a new company, or give that information to a competing company. As such, employers may want a non-compete clause added to contracts so that valuable information and trade secrets can be kept within their company.

In some instances, however, a business might abuse a non-compete clause by forcing employees to sign one when it isn't applicable for their jobs or the information they handle. Reasons for doing so might be to try and prevent employees from leaving the company and working for someone else.

Contact a Houston Employment Lawyer

If you have been the victim of a non-compete clause that prohibits you from getting another job, contact the Houston employment attorneys of the Ross Law Group at 713-482-6910.