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The Uncertain Status Of Post-Employment Non-Compete Covenants In Texas, Jon H. Sylvester

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A post-employment non-compete covenant is an agreement by an employee that, after termination of employment he or she will not compete with his or her former employer-usually within a specified geographic area and for a specified period of time. Such covenants are standard parts of many employment contracts.

Under the long standing common law of contracts, non-compete covenants are generally suspect as restraints of trade. Post-employment non-compete covenants also bear a strong presumption of unfairness because of the superior bargaining power almost invariably wielded by the employer. Nevertheless most jurisdictions, including Texas, have traditionally enforced post-employment non-compete covenants within the …