Texas Needs Non-Compete Agreement Reform Now

This article discussing the terrible situation in Florida related to non-compete agreements brought the issue back to mind. In Florida, it seems that everyone has a non-compete agreement. Teachers. Janitors. Security guards. Factory workers. That's how absurd the situation has become. Sadly, Texas is just as bad. In recent years the Courts have made it far to easy for an employer to abusively enforce a non-compete in situations in which they truly should not apply.

As states around the country pass non-compete reform and ban non-compete agreements for most employees, Texas remains a hotbed of non-compete abuse. Let’s be clear: Non-compete agreements are restraints of trade. Non-compete agreements should only enforceable to the extent they are necessary to protect a legitimate business interest. And preventing normal, ordinary competition is not a legitimate business interest.

Given the current state of the law in Texas, we need a legislative fix. I encourage everyone to talk to their state legislators and candidates this election season. Ask them if they plan to do anything to reform non-compete abuse. Remember, the legislators in Austin are supposed to work for you. If they aren’t, then it’s time to replace them.

And if your employer gives you a non-compete to sign, DON’T SIGN IT. At the very least, don’t sign it until you have an employment attorney look at it for you. Many times, the terms can be negotiated before you sign. After you sign, the employer has what they want and will refuse to negotiate.