A Texas non-solicitation agreement is used by business owners to prevent their employees from approaching other workers, clients, or suppliers for their own business interests. This contract helps ensure that skilled employees do not use the connections they make under the company’s employ to recruit other workers or steal clients. A properly executed contract should include how long the restrictions will be in effect, the geographical area where they will apply, and what the employee will receive as consideration for signing.
- Statutes: § 15.50, § 15.51, § 15.52
- Legally Enforceable? Yes, non-solicitation agreements are enforceable and governed by non-compete statutes (Marsh USA Inc. v. Cook, 54 S.W.3d (Tex. 2011)).
- Requirements (§ 15.50(a)): To be enforced, a restrictive contract must:
- Be reasonably limited in time, geographical area, and scope;
- Be part of or ancillary to another enforceable agreement;
- Only be as restrictive as necessary to protect the employer’s business interests or goodwill.
- Exceptions: A physician may not be asked to enter into a restrictive agreement unless it adheres to the requirements outlined in § 15.50(b).
Related Forms (2)
Texas Non-Compete Agreement – Protects a business owner from unfair competition from a former employee or business partner.
Texas Non-Disclosure Agreement – Legally prohibits the signing party’s sharing of confidential information or trade secrets.