Non-Solicitation Agreement Texas Template: Everything You Need to Know
A non-solicitation agreement is a legal contract between an employer and an employee that restricts the employee`s ability to solicit business or customers from the employer after the termination of employment. A non-solicitation agreement is a common tool used by companies to protect their competitive edge and confidential information. In Texas, non-solicitation agreements are enforceable under certain conditions.
If you`re an employer in Texas looking to protect your business from potential competition from ex-employees, it is important to have a non-solicitation agreement in place. This article will explain the basics of non-solicitation agreements in Texas and provide you with a non-solicitation agreement Texas template to get you started.
What is a Non-Solicitation Agreement?
A non-solicitation agreement is a legal contract that restricts an employee`s ability to solicit customers or clients from their employer after the termination of employment. The agreement typically specifies a defined period of time and a specific geographic area where the employee is prohibited from soliciting business.
A non-solicitation agreement is different from a non-compete agreement, which restricts an employee`s ability to work for a competitor for a certain period of time after leaving the employer. While non-compete agreements are also legal in Texas, they are subject to more stringent requirements and are often more difficult to enforce.
Enforceability of Non-Solicitation Agreements in Texas
In Texas, non-solicitation agreements are enforceable as long as they meet certain conditions. According to Texas law, a non-solicitation agreement must be reasonable in terms of time, geographic scope, and the scope of activities to be restricted.
Time: The agreement must specify a reasonable period of time during which the restriction will apply. In Texas, the courts have generally upheld non-solicitation agreements with a restriction period of up to two years.
Geographic Scope: The agreement must specify a reasonable geographic area that will be subject to the non-solicitation agreement. The area should be limited to the extent necessary to protect the employer`s business interests.
Scope of Activities: The activities that the employee is prohibited from engaging in must be specifically defined in the agreement. The scope should be limited to the extent necessary to protect the employer`s legitimate business interests.
Non-Solicitation Agreement Texas Template
If you`re an employer in Texas and you need a non-solicitation agreement, it is important to consult with an attorney to ensure the agreement is legally sound and enforceable in Texas. However, having a non-solicitation agreement Texas template can help streamline the process.
Here`s a basic template for a non-solicitation agreement in Texas:
[Name of Employer]
[Address of Employer]
[City, State Zip]
[Name of Employee]
[City, State Zip]
This Non-Solicitation Agreement (the “Agreement”) is made and entered into on [Date] between [Name of Employer] (“Employer”), and [Name of Employee] (“Employee”).
The Parties agree as follows:
1. Scope of Agreement: This Agreement is intended to provide protection to the Employer`s business interests by prohibiting the Employee from soliciting or attempting to solicit any business from the Employer`s clients or customers.
2. Time: This Agreement shall be in effect for a period of [time period] after the termination of the Employee`s employment with the Employer.
3. Geographic Scope: This Agreement shall be effective in the following geographic area: [geographic area]
4. Scope of Activities: The Employee shall not directly or indirectly solicit or attempt to solicit any of the Employer`s clients or customers for the purpose of providing products or services that are competitive with the Employer`s business.
5. Acknowledgment of Agreement: The Employee acknowledges that he or she has read and understood this Agreement and agrees to be bound by its terms and conditions.
6. Enforcement: In the event of a breach of this Agreement by the Employee, the Employer shall be entitled to seek any and all legal remedies available, including injunctive relief and damages.
7. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Texas.
8. Entire Agreement: This Agreement constitutes the entire understanding between the parties with regard to the subject matter of this Agreement and supersedes all prior negotiations, understandings, and agreements.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.
[Name of Employer] [Name of Employee]
Non-solicitation agreements can provide significant protection to employers in Texas. However, it is important to ensure that the agreement is legally enforceable and meets the specific needs of your business. With the non-solicitation agreement Texas template provided above, you can get a head start on drafting your own agreement with an attorney. Protect your business interests today!