Ted owns landscape and irrigation business. He hired Frank as a general manager of the West Texas division. Frank signed a non-competition agreement when he was hired.
Frank worked great for 2 years then recently left to a competing landscape business.
Ted just called and wants to enforce the non-competition agreement.
Non-competes are enforceable if:
- They are part of an otherwise enforceable agreement.
- There was some value given to the employee (“confidential information/trade secrets can count”)
- These things are reasonable: Activities which are restrained; the time; and geographic scope.
Often, employers get tripped up on reasonableness.
It is probably not reasonable to restrict Frank from working for another landscape business located in Texas for 10 years.
P.S. For employees in the medical industry- there are some technical things in the non-competes to become aware of.