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Party Crasher: Non-Competes
Jamshyd (Jim) M. Zadeh, JD
What is non-compete?
Non-compete is different from a:
Non-solicitation agreement Non-disparagement agreement
1. Reasonable as to Scope, Geography, Time
2. Ancillary to otherwise enforceable agreement
Look at the state non-compete act
• None – CA, ND, OK
• Many states have limitations on “professionals”, physicians, broadcasters.
• Attorneys and financial services industry outside of these laws.
• Split on whether continued employment is enough consideration.
• Judicial modification (blue pencil) usually allowed.
• Many states undecided if unenforceable if employee is terminated without cause.
Non-competes for low wage and operational workers? – 27% go to earners under $40k
Used for warehouse workers, sandwich makers and dog walkers
Non-Compete Agreements in TX before 1989
Non-competes in Texas from 1989-mid-2000s
Non-competes in Texas now
Non-Compete realities
Cease and Desist is sometimes all that is done.
Employees have no $.
Employers just want it to stop.
TRO and TI practice is expensive.
Is this a case where you must set an example?
Does employer have clean hands?
What if you successfully enforce?
What if you fail?
New employee silver bullet in Texas?
Freedom to Compete Act - Probably Not.
Non-compete tips
• Go over your non-compete regularly
• Properly limit as to scope, geography and time
• What state’s law applies?
• Consult a lawyer (Julie and Julia).
• Tolling agreement
• Follow on LinkedIn or hire Mike Coffey.
• Please do not use a non-compete for everyone
Any questions or comments?
www.zlawz.com
817-335-5100
Jamshyd (Jim) M. Zadeh
Law Office of Jim Zadeh, P.C.1555 Rio Grande Avenue
Fort Worth, TX 76102
817-335-5100
www.zadehfirm.com