Conducting exit interviews with departing employees serves two important purposes. First, a departure interview provides an opportunity to remind departing employees of their ongoing obligations to the employer. We encourage employers to review the terms of the employee`s non-compete agreements with the employee during departure negotiations so that departing employees understand their obligations (and understand that the employer takes these obligations seriously). Ensure that managers are trained to conduct such interviews properly so that they do not unassumcefully agree to limit the scope of the non-compete obligation in their conversations with departing employees. However, Texas courts will not enforce the obligation not to participate in contests if the court finds that such an agreement is “contrary to public order and therefore unscrupulous in its content.” [59] It is also necessary to specify the type of enterprise or sector in which the worker is prevented from working. In our example, the employee could not work for other gourmet sandwich companies. This restriction is closely tailored to the employer`s industry and the market in which it competes. If the non-compete obligation had attempted to prevent the employee from working for restaurants or businesses that sell food, a court would likely consider this restriction too broad. This would prevent the employee from working for too many types of businesses that are not in direct competition with the employer, including places like cafes, five-star restaurants, and family stores. 23. Is there another way to know if the agreement is enforceable? Goodwill includes a variety of intangible assets, including market position and reputation. Confidential business information includes commercially valuable information that is not generally known outside the Company and that the Company has taken appropriate measures to protect.

Unless it is goodwill or trade secrets/confidential business information, an employer cannot prevent an employee from approaching a competitor. In other words, non-compete obligations can be used to prevent unfair competition (with misappropriation of goodwill or confidential business information), but not for ordinary competition. What business interests are we talking about here? What exactly do the courts allow employers to prohibit with these agreements? The departure of workers presents several particular risks for former employers. For example, business contacts and relationships acquired for the employer during work could be usurped. The employer does not want the employee to work for another competitor and steals all these contacts. This helps explain why something like a 10-year non-compete clause wouldn`t make sense to a court in this context. .

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