If I currently have a non-compete agreement with an employer and am looking to change jobs, how can this effect me?

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If I currently have a non-compete agreement with an employer and am looking to change jobs, how can this effect me?

One aspect of the non-compete states, “5. Upon termination of employment, I expressly agree not to engage in or participate, directly or indirectly, in any business in competition with the company within 15 miles of all Company’s location’s to perform services for a period of twenty-four (24) months”. However, I know within my state most non-compete agreements are not enforceable.

Asked on July 30, 2012 under Employment Labor Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Under the laws of most states in this country the non-compete clause such as the one you have written about between an employer and employee is invalid and void on public policy grounds.

The rationale is that the contract has no consideration given for it. Ordinarily, non-compete clauses are valid soley with respect to a sale of a business to prevent the seller from creating another business to compete in a certain mile radius from where the sold business is located.


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