The Texas non-compete & non-solicitation agreement is used to protect an employer’s professional interests by restricting an employee’s ability to engage in competitive business activity. The limitations imposed upon the individual will prohibit them from operating with similar businesses during their term of employment and for a specific duration after the expiration of the employer-employee relationship. These limitations, however, must be confined to a reasonable geographical radius no greater than what is necessary to prevent unfair competitive activity. The agreement also mentions a clause preventing the employee from soliciting the employer’s customers and other individuals associated with the company.
Laws – § 15.50
Non-Compete Limit – Limitations should be no greater than what is necessary to preserve the best interests and goodwill of the employer.
Non-Solicitation Limit – As with non-compete agreements, non-solicitation limitations should exceed no further than what is needed to protect the employer’s business interests and goodwill.
Limitations for Licensed Physicians – Restrictions imposed upon a licensed physician must comply with § 15.50(b).