Frequently Asked Questions About Non-Competition Agreements in Dallas
Non-competition agreements are something that both employers and employees should understand3 min read
Non-competition agreements are something that both employers and employees should understand. Dallas is located in the state of Texas, which has unique laws governing the enforceability of non-competition agreements. To ensure that you are staying within the parameters of the law, it is essential to seek counsel from experienced lawyers that understand the local regulations.
UpCounsel is the perfect platform for legal requirements involving non-competition agreements, as lawyers from their community have an average of 14 years of experience within the business legal industry. Furthermore, they provide a wide array of services to cater to your individual needs. This may include a one-time consultation or an entire legal department made up of freelance lawyers. Companies globally, both small and large, can be found in their list of trusted clients.
To find a reliable lawyer that understand the regulation in Dallas, it is fundamental to look out for certain features. For starters, we suggest accessing a lawyer’s UpCounsel profile. This will display ratings and reviews of their recent work, allowing you to make an informed decision.
With this article, we provide a comprehensive guide on some frequently asked questions regarding non-competition agreements in Dallas.
What Is a Non-Competition Agreement?
A non-competition agreement (or non-compete agreement) is a legally binding contract between an employer and an employee. It prevents the employee from engaging in competition during or after the employment period. This agreement can also be between two businesses.
When Are Non-Competition Agreements Enforceable?
Non-competition agreements are enforceable when the employee receives consideration. This means that the employee must receive a benefit that they would not have otherwise received. In Texas, this benefit could be anything from a promotion or an increase in salary. This exchange of benefit for an agreement not to compete is legally considered sufficient consideration for the agreement to be binding.
Are Non-Competition Agreements Legal in Dallas or Anywhere in Texas?
Yes, non-competition agreements are legal in Dallas and throughout the state of Texas. To be enforceable, these agreements must, however, be specific to the services being provided or the confidential knowledge that the employee will gain by working for the employer.
The agreement must also have reasonable limitations on the scope, duration, and geographic area of the restriction. The geographic area must be limited to the territorial boundaries of the geographical areas in which the employee provides services or has access to the employer’s confidential information. The duration must also not be longer than two years and must be "ancillary to an otherwise enforceable agreement".
What Are the Consequences of Violating a Non-Competition Agreement?
Violating a non-competition agreement may result in civil and criminal penalties. If an employee is found to have violated the agreement, they may be required to pay damages to the employer. If the agreement is found to be unenforceable due to unreasonable restrictions, the employee may be exempted from the agreement altogether.
Employers may also have other options to prevent employees from violating non-competition agreements. For example, employers may be able to include an injunction to prevent an employee from working for a competitor.
How Do I Draft a Non-Competition Agreement?
Drafting a non-competition agreement in accordance with the laws of Dallas and Texas can be difficult. It is therefore important to seek counsel from experienced attorneys. UpCounsel’s lawyers can provide the needed advice and assistance when drafting a non-competition agreement. When choosing a lawyer, be sure to check their profile on the platform. This will provide ratings and reviews of their recent work.
Should I Have a Non-Competition Agreement Documented by an Attorney?
It is important to seek contracts with experienced attorneys when considering a non-competition agreement. This is especially the case in Texas, as non-competition agreements must adhere to specific provisions to be enforceable. As mentioned, UpCounsel is the perfect platform for legal requirements involving non-competition agreements, as their lawyers understand the regulations of Dallas and Texas.