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Non-competes

Leaving a miserable employment experience may bring a sense of relief, but quitting may also signal the start of a stressful job search. That stress is often compounded by consideration of non-compete clauses or agreements.

Fortunately, lawmakers and courts are increasingly recognizing the unfairness of non-compete agreements and placing limitations on their use.

Dallas law firm Cuadra Law can guide you in deciding whether to sign a non-compete agreement and represent you in employment negotiations and disputes.

What is a Non-Compete Agreement?

A non-compete agreement can either be a standalone contract or a clause within an employment agreement. 

It restricts an employee from starting a competing business or taking a job with a direct competitor for a certain time after leaving the employer. 

While similar in purpose, non-compete agreements differ from non-disclosure agreements (NDAs) which prohibit the disclosure of confidential information but don’t limit future employment opportunities.

Common Mistakes in Non-Compete Agreements

Employees must be aware of what makes a non-compete agreement legally binding. Without this knowledge, they may find future employment options to be limited.

Aside from overly broad language that makes some non-competes too confusing to navigate, factors courts may consider in such agreements include:

  • Is the time period reasonable? Non-compete agreements should generally be 2 years or less.
  • Is the territory covered under the non-compete unreasonably broad?
  • Is the non-compete agreement standard (used for every employee), regardless of their position or role?
  • Does the non-compete agreement offer the employee a benefit (e.g., a better title, bonus, or other specifically outlined benefit) for signing it?
  • Is the non-compete agreement too aggressive (does it essentially prevent employees from finding comparable work and supporting themselves)?.
  • Is there an assignment clause transferring the agreement if the business sells?

How We Help Employees with Non-Compete Agreements

Do you work in the Dallas – Fort Worth area and have a restrictive non-compete clause or agreement? Cuadra Law can determine whether a non-compete clause is unenforceable or unfair and help protect your rights.

Let experienced employment lawyer Edel Cuadra review non-compete agreements before you sign them, maximizing your options if you change jobs. Contact us to schedule your free consultation today!

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