In Marsh USA Inc. v. Cook, 354 S.W.3d 764, 768 (Tex. 2011), the Texas Supreme Court has clarified the Texas Non-Competition Opposability Act. Marsh`s agreement prohibited the employee from requesting, within two years of termination, a particular type of business of persons who were customers or potential customers of his employer. In some states, such as California, the courts will not apply a non-compete clause. Other states limit the use of a non-compete clause, so check the laws of your state or country before establishing a non-compete agreement if you want it to be legally applicable. However, the Court of Appeal rejected the worker`s arguments on the grounds that the injunction onlyins the non-invitation and confidentiality provisions of the agreement, not the non-competition clause. Id. at 3. Fortunately, he sought a lawyer before signing an agreement that removed legal limits from his children and grandchildren that prevented them from working in the field. (In a monstrous case like this, it is doubtful that the document will be upheld in court because of its significant consequences.
The example aims to show how far some employers are trying to go with their non-compete agreement.) There are many reasons why you may decide that your employees sign either an NDA or a non-contest. It is important to understand the differences between these two documents and their application. The seven frequently asked questions asked by individuals to these agreements are listed below. Yes, yes. However, it is legal for the employer to take adverse action against you – such as dismissing or firing you – because the refusal to sign depends on the circumstances of your case and may depend on whether the agreement the employer wants you to sign is applicable under your state`s law. Contract law issues in your state can also be a factor in implementing an agreement that requires you to sign or is threatened. One is whether your employer is required to pay you extra money or to give you other consideration, as was said in the previous question. Does the employer have a legitimate interest that it protects by the non-compete agreement? Each state has its own standards regarding the validity of non-competition clauses. For specific information on your state`s non-compete obligations and pending laws, please contact a lawyer in your state. At the federal level, the White House released a 2016 report on non-competitive employment contracts, which says they can “impose significant costs on workers, consumers and the economy in general.
Or if you have acquired some confidential knowledge that you would inevitably use at work for your new employer, a court may argue that as a legitimate reason for the thesis agreement.