If you live and work in Texas, you may have heard of non-compete agreements. These agreements are typically used by employers to protect their businesses from employees who may leave and start competing companies. But, how long can a non-compete agreement last in Texas?
In Texas, non-compete agreements are governed by Texas Business and Commerce Code § 15.50. This law states that a non-compete agreement can last no longer than two years from the date the employee leaves their company. This means that if you are subject to a non-compete agreement, you cannot work in a similar industry for two years after leaving your employer.
However, there are a few exceptions to this rule. First, if the non-compete agreement is part of a sale of a business, it can last up to five years. Second, if the employee breaches the non-compete agreement, the employer can seek an injunction to prevent the employee from violating the agreement. Finally, if the employee is a high-level executive or has access to trade secrets, the non-compete agreement can last longer than two years.
It`s important to note that non-compete agreements are only enforceable if they are reasonable in scope and geographic area. In other words, the agreement cannot prevent an employee from working in the same industry anywhere in the world. Instead, it must be limited to a specific geographic area and specific type of work.
If you are subject to a non-compete agreement in Texas, it`s important to speak to an attorney to understand your rights and obligations. While these agreements can limit your job prospects, they must be reasonable and cannot prevent you from making a living. By understanding the law and your rights, you can make informed decisions about your career and future.