What Happens if You Break a Non-Compete Agreement?

Depending on your line of work, your employer may have you sign a non-compete agreement. This would be in your employment contract when your employer agrees to allow you to work for him or her. But what if you break a non-compete agreement?

The business lawyers at Hendershot Cowart P.C., are here to explain breaking non-compete contracts. Here's what you should know about the legality of non-compete agreements if you live in Texas.

What is a Non-Compete Agreement?

A non-compete agreement means that your employer has designated that you can't start a competing business against them. Employers add these to employee contracts because they don't want an employee to train and learn from them and then turn around and use that knowledge to compete against them. It helps to protect the rights and privacy of the business to avoid financial harm.

The scope of a non-compete agreement will depend on your employer. They will put in their own rules and requirements, so make sure to read it over before you sign it.

Do They Apply in Texas?

Yes, non-compete agreements apply in Texas, though there are exceptions. They need to meet certain requirements for them to be legally binding. If a non-compete agreement doesn't meet those requirements, then you could potentially avoid a lawsuit. It comes down to the conditions of your specific contract.

What Should I Do?

A fair, enforceable non-compete protects all parties involved. However, if you violated a non-compete agreement, you should get in contact with a business law attorney immediately. If you are unsure about the legalities of your non-compete, our Houston firm is here to help. The business law attorneys at Hendershot Cowart P.C. have over two decades of experience with providing proven solutions for clients. We are thoroughly dedicated to helping our clients and protecting their best interests.

Our Houston business law firm is here to help. Call us today at (713) 909-7323.