Tortious Interference with Non Compete Agreement Texas

Tortious Interference with Non-Compete Agreement in Texas: What You Should Know

Non-compete agreements are becoming increasingly popular in the business world as companies try to protect their interests by restricting employees from working for competitors. However, these agreements are not foolproof, and sometimes, third parties may interfere with them, resulting in a breach of contract. This interference is often referred to as tortious interference, and it can have significant legal consequences.

What is Tortious Interference?

Tortious interference occurs when a third party intentionally interferes with a contractual relationship between two parties. In the case of non-compete agreements, a third party may try to lure an employee away from their current employer, knowing full well that the employee has a non-compete agreement in place. This action can lead to a breach of contract and can cause significant damage to the employer.

Tortious interference can be committed by anyone, including a competitor, a former employee, or even a friend or family member of the employee. The key element in this type of interference is intent. The third party must have known that their actions would result in a breach of the contract and must have intended to cause harm to the employer.

Non-Compete Agreements in Texas

Texas is one of the few states that enforces non-compete agreements. These agreements are generally allowed as long as they are reasonable in scope and duration. In Texas, non-compete agreements must be limited in scope and duration to be enforceable. These agreements must be necessary to protect the employer`s legitimate business interests and must not be overly restrictive.

Tortious Interference with Non-Compete Agreements in Texas

When a third party interferes with a non-compete agreement in Texas, the employer can file a lawsuit for tortious interference. To prove this claim, the employer must show that:

1. There was a valid non-compete agreement in place.

2. The third party intentionally interfered with the agreement.

3. The interference caused a breach of the agreement.

4. The interference caused damages to the employer.

If the employer can prove these elements, they may be entitled to damages. These damages can include lost profits, attorney`s fees, and punitive damages. The court may also issue an injunction to prevent the third party from continuing to interfere with the non-compete agreement.

In Texas, the statute of limitations for filing a claim for tortious interference with a non-compete agreement is two years. This means that the employer must file their claim within two years of the interference occurring.

Conclusion

Tortious interference with non-compete agreements can have serious consequences for employers in Texas. If you are an employer that has had a non-compete agreement breached due to third-party interference, you may be entitled to damages. It is important to seek the advice of an experienced attorney who can help you navigate the complex legal issues surrounding non-compete agreements and tortious interference. As a professional, I hope this article has provided you with valuable information regarding tortious interference with non-compete agreements in Texas.