Texas employers want to prevent their insider information from reaching the hands of competitors. Non-compete agreements may be used by health care employers who want to maintain control over their physicians. The validity of a good non-compete agreement lies in its ability to remain valid and enforceable without putting too many restrictions on former employees.
The importance of non-compete agreements
A non-competition agreement means that employees are not allowed to compete in similar professions with their employers. These agreements are common in the health care industry where there are millions of competing physicians. Physicians who have been working for decades do not want to be forced out of their practices by newer, less qualified doctors.
Texas courts are able to enforce non-competition agreement contracts and disputes that protect an employer’s business interests. These agreements are meant to protect employers from employees who are no longer employed with them but want to divulge their trade secrets and confidential information.
Contract requirements
A valid non-compete agreement must contain clear details about the position in writing. Employees must be informed of their major responsibilities in their roles, and an agreement must be written correctly for it be enforceable in court. If an employer sues the employee for violating the contract, the employee can counter-sue for writing an invalid contract. The Texas Business & Commerce Code outlines the requirements that employers have to follow when writing employment contracts.
How the courts enforce businesses contracts
A non-compete agreement describes what an employee can and cannot do after leaving a job. Employees are bound by the terms of the contracts they sign, but some might refuse to honor their duties after leaving the employer. Texas courts can intervene to protect the confidentiality of business information.