As a general rule, the employment should be similar in limiting. With respect to the duration of the agreement, a court would probably consider that a non-compete agreement would be inappropriate – and therefore unenforceable – if it prohibited an employee from working for a competitor for the next 30 years. The Texas non-compete clause lists several areas in which adequacy must be assessed: time, geographic area and scope of activity, which must be limited. Time, geographic space and activity limits are defined by the courts and each case must be considered individually. With respect to non-competition clauses, Texas law provides that a non-compete agreement is a certain type of restrictive competition agreement, which is a legal clause of a clause in an employment contract or employment contract that prevents a worker from doing something. For example, if Employee A works as a salesperson for Company X with respect to appropriate activity restrictions, a Texas court would likely find that a provision is inappropriate if it prevents A employees from working in a totally different function than that of a salesperson for Company Z. Several other Texas Supreme Court cases have improved the applicability of competition agreements that culminated in 2011 in the Marsh USA case. In it, the court found that the employer`s thinking should not “raise” the need to limit competition in exchange for the employee`s promise not to compete. On the contrary, the review must be “proportionate” to the need to limit competition. Considerations such as confidential information, trade secrets and the need to protect the value may, in the right case, meet this standard. Texas courts have recognized that overly broad restrictions on employee mobility are hurting the free market. As a result, not all non-competition prohibitions (i.e.
restrictive agreements) apply in Texas. To be valid under Texas law, a non-competing federation must exist “at an otherwise applicable agreement.” Myth #3: an employer who threatens to fire an employee if he does not sign a non-compete agreement invalidates such an agreement.