Full question:
My corporate office is located in Pinellas County, Florida. I signed a tight non-competition agreement based on the promises of promotion and participation in the ownership program. I was promoted and transferred to Texas. It takes three years as a branch manager to qualify for ownership. My company is now closing my branch since they already have a branch within a few miles north of mine. The company offered to demote me, reduce my territory, and guarantee my salary only until January of 2007. I declined. I want to seek employment with a similar company in this area. I have work in this industry for the last seven years. It is my career. Do I have a chance to remain in this industry because of breach of contract? What are my options?
- Category: Employment
- Date:
- State: Texas
Answer:
Non-competition agreements are valid if they are reasonable and protect the employer's interests. For instance, a clause that prevents an employee from contacting customers they worked with in the last six months is usually enforceable. Courts assess these agreements for reasonableness regarding time and geographical scope. If a company operates only in Houston, a restriction preventing an employee from soliciting business within a hundred miles would likely be deemed excessive. Similarly, a lifetime restriction on a doctor practicing in the same city as their former clinic would be unreasonable.
If a court finds a non-competition agreement too broad, it may either modify it to a reasonable scope or declare it void altogether. Given your situation, it’s advisable to consult an attorney in Texas to discuss your specific circumstances and explore your options.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.