Non-Competes At the End of Employment
Strictly speaking under Texas law it is hard to make a non-compete stick when it is first introduced at the end of employment. Assume a situation where an employee signed a confidentiality agreement and non-disclosure agreement but didn’t sign a non-compete, non-solicit (customers), or anti-raid (employees). Is the employer out of luck? Maybe not.
For purposes of this discussion, assume that what I am about to suggest is not legally enforceable under the Texas non-compete statute. Put another way, the employer is never going to sue the agreement and the employee is under no requirement to sign the agreement. They can simply walk – a non-compete based on past consideration doesn’t work.