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Non Compete Agreements in Texas

This is a complicated area of law, but in general, in Texas, non-compete agreements are enforced more strictly than in other states.  It is important that the consideration (the thing provided in an agreement in return for something else) grow out of the non-compete agreement.  So, if the consideration for a non-compete is money, then that will not suffice.  Because, the money or salary is seen as a separate agreement.  But, if the consideration is access to confidential information, then courts will see that access as being made possible by the non-compete agreement.  The covenant of a non-compete is necessary as a way to protect that confidential information.

So, in most Texas non-competes, the consideration is access to confidential information.

So, how do some non-compete agreements fail?  Various ways include arguing that: 1) the information provided to the employee was not truly confidential, 2) the confidential information was provided too late to be of any real benefit to the employee and it could not serve as consideration, 3) and the usual: the non-compete was too broad in geographical location or length of the agreement.

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