Covenants not to compete, or non-compete agreements, have become common employment contract inclusions. Businesses across Texas may require that employees sign non-compete agreements to protect the company. These restrictive covenants prevent people from accepting jobs with competing businesses. They also prohibit professionals from starting similar companies in the same industry. Typically, the agreement only remains enforceable for a certain amount of time or in a specific geographic region.
In some cases, workers who are theoretically subject to a non-compete agreement can fight back against them or employer attempts at enforcement, possibly by showing that the agreement does not meet all necessary legal standards. Failing to offer something of valuable consideration to an employee could render a non-compete agreements invalid.
Workers deserve compensation for concessions
For a noncompete agreement to be enforceable, it must fulfill certain legal requirements. There need to be appropriate limitations on the agreement to prevent undue hardship for the professional. They should also receive something of valuable consideration for signing.
A contract is not a fair agreement if it only extends benefits to one of the parties who sign. Contracts typically have to offer something worthwhile to both parties. Many times, what workers receive in exchange for signing noncompete agreements is a job offer or promotion.
Some employers may also compensate workers by offering them an extra vacation day or a one-time signing bonus. In scenarios where employers do not adequately compensate workers for making professional concessions, the contract that they signed may not be enforceable.
Reviewing an original noncompetition agreement with a skilled legal team can help people evaluate their options. Workers can sometimes avoid enforcement efforts that could cost them money or deny them economic opportunities.