D`Onofrio`s non-competition clause prohibited him, inter alia, for a period of 18 months from his employment in the travel agency, from working “in any capacity whatsoever” for “any direct or indirect competitor [of the travel agency] in the context of any work related to the sale or marketing of cruises, accompanied or independent tours, river cruises, safaris or resort stays”, or to do business with “a natural or legal person” 1992, 1990, 1988, 1995, 1990, 1990, 1990, 1990 of the travel agency during the previous 3 years. A. Yes. I don`t waste time, and since I`ve done over 1000 competition consultations, I know the questions I need to ask and I`m good at quickly analyzing a situation. In short, competition bans can be enforceable in Texas. We are here to help you understand your non-compete clause. As far as the field of activity is concerned, there are no fixed rules, but cases have shown that courts are less likely to impose non-competition rules preventing a worker from cooperating with customers with whom the worker has not been in contact during his employment. However, companies can generally prevent contact with existing customers. Non-compete rules may prevent an employee from working for competitors, but time and geography constraints must nevertheless be reasonable for the agreement to be considered valid. While Texas wants to encourage business and promote healthy competition, it also allows employers to require employees to sign competition bans that protect their business interests. Texas Business and Commerce Code (TBOC) Section 15.50 imposes two strict requirements on any non-compete clause in order for them to be applicable. First, the agreement must be an agreement in force at the time the non-competition clause is applied or is part of an enforceable agreement. This means that there must be some consideration on the part of the employee who supports the agreement.
And this consideration must go beyond the usual elements of an employer/employee relationship. Therefore, the mere payment of wages or the maintenance of employment are not sufficient to satisfy the consideration condition. Then, to Marsh USA v. Cook (2011), the Texas Supreme Court again expanded the scope of enforceable competition bans. It departed from the 1994 decision, which limited the application of non-compete rules or agreements in the state and re-evaluated the Texas Covenants Not to Compete Act. Read on to explain the applicability of non-compete rules in Texas. If you are a party to a non-compete agreement or have a legal case regarding a non-compete clause in Texas, contact us today. In recent years, Texas courts have shown support for the employer`s use of non-compete rules.
The courts have done so by finding certain third-party effectiveness requirements which, in certain circumstances, are implicit in non-competition rules. . . .