Under Texas law, non-compete agreements must be part of an otherwise valid employment contract and are enforceable only if they are appropriate and do not impose greater restrictions on a worker than is necessary to protect the legitimate interests of the company. Common sense is therefore the key to a valid non-competition agreement. In terms of geographic scope, non-competition prohibitions are more likely to be applied in court if they do not limit a worker beyond the areas in which he or she has actually worked for the employer attempting to enforce the agreement. Restrictions that go beyond these geographic areas are generally considered inappropriate. For example, authorization work is generally not an enforceable agreement, but courts have found that employers who give your employees access to proprietary information are sufficiently taken into account for the non-competition clause to apply in Texas. However, the Texas legislature has made an exception by allowing, in certain circumstances, the enforceability of non-competition agreements. In Texas, a non-compete agreement is applicable if it exists: to understand how you can exit a Texas non-compete agreement, you must first determine what makes a non-compete agreement enforceable – and thus what could make a non-compete agreement unfeasible. Each state has different non-competition laws and it is important to understand when a non-compete agreement is applicable under Texas law. The Texas non-compete clause lists several areas in which adequacy must be assessed: time, geographic area and scope of activity, which must be limited. Time, geographic space and activity limits are defined by the courts and each case must be considered individually. Paragraph 15.50 (b) of the act describes situations in which a federal state is enforceable against a physician[24] as a buy-back clause.

[25] “This buy-back clause gives physicians the unique opportunity to purchase their alliances that do not have other employees under contract.” [26] In accordance with Section 15.50 of the Act, if the physician decides to compete with a non-compete clause despite the signing of an existing non-competition clause, he must pay the agreed amount or decide that a reasonable price is set by an arbitrator. [27] Only an arbitrator can determine a reasonable price. [28] A court does not have the power to determine a reasonable price and cannot render a contract unenforceable on the basis of an abnormally fixed purchase price. [29] Note that if an arbitrator can determine a reasonable price, neither an arbitrator nor a court has the power to reform the non-competition contract in order to create a buy-back clause. [30] If the Confederation does not contain a buy-back clause, it is simply unenforceable. [31] Each state has slightly different laws on non-competition prohibitions, with some states offering solid recognition of these agreements and other states restricting their applicability to varying degrees. In California, for example, non-competition prohibitions are invalid, while Texas recognizes its validity in certain circumstances. In most years, non-competition prohibitions are designed to prevent a worker from leaving his or her job and competing with his former employer to attract customers or businesses. But things are changing. The Texas courts have begun to see a non-compete agreement in a more favourable light.

This has strengthened the applicability of non-competition agreements. But there are still some obstacles.