Noncompete agreements, also known as noncompetition clauses, are commonly used by employers to protect their trade secrets and other proprietary information. These agreements typically prevent employees from taking a job with a competing company for a certain period of time after leaving their current job.

However, for employees in the state of Texas who work for out-of-state employers, the enforceability of noncompete agreements can be a complex and uncertain issue. This is because the laws governing noncompete agreements vary from state to state, and the state where the employer is located may have different rules and law than Texas.

In general, Texas courts have been hesitant to enforce noncompete agreements unless they are narrowly tailored to protect the employer’s legitimate business interests.  Think critically about this? What is your employer’s core business interest?  Is what your employer claiming as the business interest they are trying to protect with the non-compete agreement that have with you legit?   At least for Texas, an employer can’t use arbitrary restrictions that doesn’t actually relate to their real world business interest. This is why noncompete agreements made from generic template or legal forms websites like Legal Zoom don’t work well when challenged in Texas courts.  If an out-of-state employer tries to enforce a noncompete agreement that is more restrictive than what would be allowed under Texas law, the agreement may not be enforceable in Texas courts.

This can create challenges for Texas employees with out-of-state employers who are subject to noncompete agreements. If they are laid off or leave their job, they may be unsure whether the noncompete agreement will be enforced in Texas, and this uncertainty can make it difficult for them to find new employment.

Furthermore, if a Texas employee does decide to take a job with a competing company, the out-of-state employer may try to enforce the noncompete agreement in the state where the employer is located. This could lead to costly and time-consuming legal battles, and the employee may not have the same legal protections in the other state as they would have in Texas.

Overall, Texas employees with out-of-state employers who are subject to noncompete agreements face unique challenges. It is important for both employers and employees to carefully consider the potential implications of these agreements and to seek legal advice if necessary.  Yes, you think as an employee you have no right to change the terms of a noncompete; but you may be wrong. There’s a time, a place, and a way in most cases.