Non-compete Agreements
Non-Compete Agreements Attorney in Houston, Texas
Gregg M. Rosenberg - Rosenberg & Associates
Are noncompetition agreements enforceable?
Houston, TX employment law attorney Gregg M. Rosenberg talks about the enforceability of noncompetition agreements. He explains that non-competition agreements are generally enforceable in Texas if they meet specific legal standards, which most do. Key factors include whether the agreement is supported by consideration, such as access to confidential information or trade secrets, and whether it is reasonable in scope, geographical reach, and duration. Non-competes are enforceable only to the extent necessary to protect an employer’s legitimate business interests. If an agreement is deemed unreasonable, it may be subject to modification, and the lawyer’s practice can assist in addressing or improving such agreements.
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People often ask me, “When I’m presented with a non-competition agreement, is this agreement enforceable?” This is a common question, and surprisingly, nine times out of ten, the agreement will be enforceable. Texas law is clear: if certain standards are met—and most agreements include these standards—they are likely to hold up in court.
The key factor is whether the agreement is supported by consideration. This could be a promise to provide confidential information, trade secrets, or similar benefits. In our practice, we evaluate whether an enforceable agreement is subject to modification. In Texas, a non-competition agreement must be reasonable in three main aspects: the scope of the activity to be restrained, the geographical area covered by the prohibition, and the duration of the restriction.
The overarching principle is that a non-compete will only be enforced to the extent reasonably necessary to protect the employer’s legitimate goodwill and business interests. In simpler terms, if the agreement isn’t reasonable—and we can often find ways to show it isn’t—we can help modify or address it to better suit your needs.
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Non-Compete Agreements Attorney in Fairfax, Virginia
John C. Cook - Cook Craig & Francuzenko
I want to take a job with a new employer, but I have a non-compete agreement with my current or former employer. What do I do?
Fairfax, VA employment attorney John C. Cook talks about helping clients negotiate their current non-compete agreements, while seeking new employment. He says that non-competition agreements are often overly broad, which can lead to lawsuits from former employers or hesitation from potential new employers. Such agreements should be reviewed by a lawyer, as courts frequently reject overly broad terms, creating an opportunity for renegotiation. The lawyer can assist in narrowing the agreement to protect the former employer’s legitimate business interests while allowing the individual to move forward with their career.
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Non-competive agreements can be a problem. They can be a problem because they’re often written very broadly, and that means you are potentially subject to being sued by your former employer. It may also mean that your new employer is reluctant to go forward with bringing you on board. So you need to have that agreement reviewed by a lawyer. Many times these agreements are written so broadly that a court will not enforce them. And so that opens up the opportunity to renegotiate that term. To go to your former employer to say, look you and I both know this agreement is written too broadly. Our lawyers should work on making this more narrow to protect legitimate business interests, but let me go on with my career in my new employer. And so we can help in that negotiation process.
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Noncompete Agreements Attorney in Tampa St. Petersburg, Florida
Robert D. Eckard - Robert Eckard & Associates
How do you attack non-compete agreements?
Palm Harbor, FL business litigation attorney Robert D. Eckard discusses how to attack non-compete agreements. He explains that when examining a non-compete agreement, I thoroughly assess its validity and enforceability. In Florida, several criteria must be met for a non-compete agreement to be considered valid and enforceable. Firstly, there must be a written contract signed by the party against whom it is being enforced. Secondly, there must be a legitimate business interest that justifies the need for protection.
The legitimate business interest can either be explicitly outlined in the statute or inferred from the circumstances. If the non-compete agreement lacks a legitimate business interest, it may be deemed invalid. Additionally, I evaluate whether the non-compete agreement is reasonable in terms of its geographic scope, time duration, and the specific activities it seeks to restrict.
If any of these elements are found to be unreasonable or overly restrictive, it could render the non-compete agreement invalid. Therefore, I meticulously analyze all aspects of the non-compete agreement to ensure its compliance with the relevant laws and regulations.
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Noncompete Agreements Attorney in Tampa, Florida
Stan Padgett - Padgett Law, P.A.
What issues arise in connection with non-compete agreements?
Tampa FL, commercial litigation attorney Stan Padgett talks about the issues that arise in connection with non-compete agreements. He explains that non-compete agreements are governed by different rules in each state, with Florida providing a statutory framework. While restraints of trade are generally unlawful, Florida allows non-compete agreements in specific circumstances to protect legitimate business interests, such as trade secrets, customer lists, and existing clients.
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Every state has different rules on non-compete agreements. In Florida, these agreements have a statutory basis, where the focus is on what the covenant covers and what it is intended to protect. Generally, a restraint of trade, such as a covenant not to compete, is unlawful. However, Florida law allows for them under specific circumstances.
Non-compete agreements can protect trade secrets, business secrets, customer lists, existing clients, and other employees. Their primary purpose is to prevent an employee from taking a business owner’s customer list, starting a competing company nearby, and immediately soliciting the business’s customers.
Some businesses attempt to draft non-compete agreements more broadly, aiming to prohibit an employee from being involved in a particular industry altogether. This creates varying degrees of enforceability, with shades of gray regarding what is allowed under the law.
Anyone asked to sign a covenant not to compete should have it reviewed by a lawyer before signing. This ensures they fully understand the terms and what rights they may be relinquishing.
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Non-Compete Agreements Attorney in Fairfax, Virginia
John C. Cook - Cook Craig & Francuzenko
Should I sign the non-compete that goes with my new job?
Fairfax, VA employment attorney John C. Cook talks about how he can help a client navigate signing a non-compete agreement. He emphasizes the importance of carefully considering non-compete agreements, especially when faced with a “sign it or lose your job” situation. While many feel compelled to sign due to financial necessity, it’s crucial to understand the potential restrictions and long-term impacts. If signing is unavoidable, the agreement can be addressed later if issues arise. However, if there are other job options or the terms seem overly restrictive, negotiation may be possible. The lawyer advises taking non-compete agreements seriously, as they can create significant challenges, and offers assistance in reviewing and exploring options.
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That’s a real problem when you’ve been presented with the sign this non-compete or else you’re going to lose your job, and most people need the job so they end up signing the agreement. What you need to do is go in with your eyes open. Understand that you’re being asked to sign something that may very well come back later and be restrictive, and you need to think through that. You may feel you have no choice because you really need that job, and then you do what you need to do. And if you need to sign it we deal with it later. But if you find that maybe you’ve got other offers, or maybe you think this is so restrictive that you want to try to negotiate different terms, then be open to that. We can help you analyze your agreement and what options you have, but most importantly, take it seriously because these things do matter and they can cause problems.
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