Texas Non-Compete Covenant Attorneys

Non-compete covenants are powerful tools for Texas businesses looking to protect their interests. The legal landscape is shifting, such as recent debates around the ethics behind non-compete covenants.  

At Mahendru, P.C., our non-compete attorneys help businesses throughout Texas draft and enforce non-compete covenants that will hold up in court. We know the stakes are high, so we keep things clear, practical, and tailored to your needs.  

What Is a Non-Compete Agreement? 

Non-compete covenants are contracts that restrict employees or business partners from working for a competitor. These agreements often include clauses that prevent employees from starting a rival business for a set time and within a specific area. 

Our non-compete lawyers understand Texas’s unique legal requirements and guide you in creating agreements that are fair and enforceable. These covenants are not designed to stifle competition. They are intended to protect your way of doing business and the innovative processes you’ve created to achieve success.  

What Is the FTC Non-Compete Ban?  

In early 2024, the Federal Trade Commission announced a new rule that would ban non-compete clauses and covenants. The rule was scheduled to go into effect on September 4, 2024. However, a district court blocked the new rule. The FTC has appealed the decision, and the legal battle is still playing out. 

If the FTC wins the appeal and the rule goes into effect, it would effectively eliminate most or all non-compete covenants nationwide. The Federal Trade Commission argues that non-compete clauses discourage innovation and stifle wages.  

For now, non-compete covenants are still legal in Texas. However, they must be drafted thoroughly to ensure they are compliant and enforceable.  

Services We Provide for Non-Compete Agreements  

Our non-compete attorneys offer comprehensive services to ensure your covenants are effective. Our services include the following: 

• Creating customized non-compete agreements  

• Reviewing existing agreements to confirm they meet legal standards 

• Negotiating fair terms with employees or partners  

• Pursuing enforcement through cease-and-desist letters  

• Defense against alleged violations   

Our approach is hands-on and client-focused. Learn more about our commercial litigation services designed to help you prevent and resolve disputes.  

What Makes a Texas Non-Compete Agreement Enforceable?  

For non-compete covenants to be enforceable in Texas, they must meet specific legal requirements. Our non-compete lawyers ensure your agreements comply with these standards to withstand legal scrutiny. Here’s what must be true: 

• Reasonable Scope: The non-compete clause must have reasonable limits on time, geographic area, and scope of activity  

• Ancillary to Another Agreement: The covenant must be part of or tied to another enforceable agreement, such as an employment contract  

• Protects Legitimate Business Interests: You must use the covenant to protect valid interests, such as trade secrets or confidential information  

• Consideration Provided: Employees must receive something in return, such as access to proprietary data, compensation, or specialized training 

Texas courts scrutinize non-compete agreements closely, and overly broad terms can be struck down. We craft agreements that protect your business without overreaching.  

Reviewing Non-Compete Covenants for Enforceability  

Reviewing non-compete covenants before signing or enforcing them will help you avoid legal pitfalls. Our experienced legal team thoroughly evaluates your documents to ensure they are enforceable and serve your intended purpose. Here’s how we approach the review process: 

• Compliance First: We check to make sure the agreement meets Texas’s requirements for reasonableness and legitimate business interests  

• Identify Weaknesses: We spot vague or overly broad terms that could render the non-compete unenforceable 

• Review for Context: Our team considers the employee’s role and your industry to ensure the document’s terms are appropriate 

• Recommend Revisions: If issues are found, we suggest targeted changes to strengthen the agreement  

Additionally, our team will anticipate possible challenges that might impact how well the agreement holds up in court. You should always assume that your non-compete covenants will eventually be subject to judicial scrutiny.  

A careful review can help prevent costly mistakes. Our contract law services offer more insights on protecting your agreements and the growth of your business. Don’t wait until a dispute arises. Proactively safeguard your business with the support of our skilled attorneys.  

Why Choose Mahendru, P.C. for Non-Compete Covenants?  

Our non-compete attorneys bring local knowledge and a practical approach to every case. We understand Texas’s business culture and the unique challenges you face.  

We also offer employment litigation services designed to help you deal with alleged violations of non-compete covenants and other employee-employer agreements.  

Recent Case Highlights 

Our team represented two former employees of a demolition company who left their employment to start their own business, Elite Demolition. Knowing the two former employees would have limited to no resources to fight a lawsuit, the former employer sued and tried to obtain a temporary injunction against Elite. Our team defeated the injunction and obtained a summary judgment finding that the non-compete agreements were fatally flawed and unenforceable. With that major ruling in hand, the case was quickly dismissed in our client’s favor. 

Frequently Asked Questions About Non-Compete Covenants 

How Long Can a Non-Compete Agreement Last in Texas? 

Non-compete covenants must have a reasonable duration, such as one to two years for employees or up to five years for business sales. There are also exceptions, as well as other types of agreements you can use to protect critical information for longer periods.  

We can help you identify the right contract for your use case and tailor its term to your industry needs.  

Can a Non-Compete Apply to Independent Contractors? 

Yes, but it must meet the same legal standards as employee agreements. Independent contractors are not subject to the same level of direct control as employees. Therefore, it’s important to consider the nature of your relationship with an IC so that you can avoid misclassifying an IC as an employee or vice versa.  

What Happens if a Non-Compete Is Breached?  

If an employee breaches a non-compete covenant, you can pursue remedies such as an injunction. You may also be eligible to receive damages or legal fees. However, it’s critical that you use enforceable agreements. Otherwise, you may be unable to take action against potential breaches.  

Talk to Our Non-Compete Lawyers Today 

Ready to protect your business with a strong non-compete covenant? Our experienced non-compete attorneys are here to draft, review, and enforce agreements that safeguard your interests. Contact Mahendru, P.C. to schedule a consultation with a non-compete attorney today.