A non-compete agreement can be a great way for a business to protect its interests and prevent competitors from gaining an edge.
Even though workers typically agree to these upon joining a company as part of employment requirements, they may not always honor the terms. Can you enforce a non-compete with a former employee?
Non-competes are enforceable in Texas
You can enforce a non-compete agreement in Texas after a worker’s employment ends. However, its terms must be:
- Reasonable in how it limits time, geography and services offered for a worker’s employment prospects
- In accompaniment of another agreement, typically employment
- Protective of your company’s interests
If your non-compete fits the criteria above, then you could act against a former employee who violates the terms. Some violations include:
- Switching sides: A former employee may begin working for a rival company in the area immediately after their employment ends. They may even start their own company that competes with your business.
- Revealing your secrets: If your former employee had access to sensitive information about your company, they may disclose this to rivals in your geographic area. This could be illegal if the pertinent information is protected intellectual property.
These actions could give your competitors an edge and jeopardize your own operations. However, there are ways to enforce a non-compete.
How you can take action
If a former employee violated your non-compete, you can try the following:
- Send them a cease-and-desist urging them to stop
- Take legal action against them
- File for injunctive relief to hinder them from continuing to violate the agreement during a lawsuit
- Attempt to settle with the former employee
While the Federal Trade Commission recently released a rule which could ban non-competes for the entire country by September this year, a Texas federal court partially blocked it. This leaves the status of the measure up in the air. For now, you can take steps to enforce the terms of your agreement and possibly seek compensation if your business suffers losses.