One of the most frequent Texas non-compete questions I am asked
is whether an employee and employer can enter an enforceable
non-compete agreement at the time of termination.
From the employee's perspective, this seems like an ideal
time to negotiate a non-compete agreement because there is no
disparity in bargaining power. Employees will not feel pressured to
sign a non-compete agreement just because they want a
job. Rather, they will simply make a rational economic
decision about whether they prefer to accept a severance
payment and temporarily limit their future job options, or
instead forego the severance payment and keep their job
options wide open. The employer, of course, wishes it would
have secured a non-compete agreement earlier in the employment
relationship (for free), but paying for a non-compete agreement now
is better than having nothing at all. Plus, by the end of
employment, the employer should have a better sense as to whether
this particular
