Skip to content

Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

In addition to the question of whether and how they can ask existing staff to sign non-compete agreements, you should be aware of the many other considerations on the application of a non-compete agreement. The majority of states allow employment to be maintained in return for a non-compete agreement. However, some additional consideration is needed in at least twelve Member States. And in at least six other states, the law on the need for further reflection is unclear. If the agreement is not sufficiently considered in exchange for a worker`s agreement not to face competition, a court may find that the agreement is not enforceable. The company would then not be able to go to court to obtain an injunction or other injunction to stop competition in violation of the agreement. In many countries, such as New York, employment or retention are considered sufficient. Specifically, when a non-compete agreement is signed for the hiring, the fact that the worker obtains a new job is considered a sufficient consideration for the worker who gives up his right to compete after the termination of that employment relationship. If the type of work requires an employer to share confidential information such as trade secrets with a new employee, the bar is even lower than that set by Sheshunoff.

In this scenario, an employer would not even have to promise that it would provide confidential information. The Texas Supreme Court considers the idea that the employee`s agreement not to disclose confidential material is considered presumed. See Mann Frankfort Stein – Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 850 (Tex. 2009). The Tribunal rendered a summary judgment in Horner`s favour and found that the non-competitive provisions of the agreement were unenforceable for lack of consideration. The Court of Appeal agreed and, in particular, rejected LCP`s argument that continued employment alone envisaged due consideration of the no-competition agreement. Strange as it may seem, there may be a reflection before an employee receives confidential information as long as an employer decides to do so. For example, if an employer promises to provide specific training to a worker a few months after hiring, the non-compete clause could be signed when the worker is hired, but will still not be applicable before the training begins. See Sheshunoff, 209 S.W.3d to 651.

Agreements that promise to continue working automatically complete the applicability test. However, employment plans do not automatically meet the “otherwise enforceable” standard. On the contrary, the Texas Supreme Court has ruled that “if not enforceable agreements under Section 15.50 (a) may come from employment at will as long as the consideration of a promise is not illusory.” Alex Sheshunoff Management Services, L.P. Johnson, 209 S.W.3d 644, 648 (Tex. 2006) (citing Light v. Centel Cellular Co., 883 S.W.2d 642, 645 (Tex. 1994)). The court dismissed Tech Electronic`s application because it dealt with non-competition clauses and found that “the offer of authorization or continued employment under Missouri contract law is simply not a source of consideration.” 2016 WL 6696070, at 5 (E.D.

{ 50 } Trackbacks

  1. URL | June 14, 2022 at 3:33 AM | Permalink

    … [Trackback]

    […] Informations on that Topic: hewins.org/jdh/?p=6185 […]

  2. click for info | August 26, 2022 at 9:58 PM | Permalink

    click for info

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  3. FFXIV Gil for sale | September 5, 2022 at 6:09 PM | Permalink

    … [Trackback]

    […] Find More Information here on that Topic: hewins.org/jdh/?p=6185 […]

  4. … [Trackback]

    […] Read More Info here on that Topic: hewins.org/jdh/?p=6185 […]

  5. ux design course | September 6, 2022 at 11:03 AM | Permalink

    … [Trackback]

    […] Info on that Topic: hewins.org/jdh/?p=6185 […]

  6. iptv | September 6, 2022 at 11:48 AM | Permalink

    … [Trackback]

    […] Here you will find 59054 more Information on that Topic: hewins.org/jdh/?p=6185 […]

  7. dump shops | September 6, 2022 at 12:09 PM | Permalink

    … [Trackback]

    […] Information to that Topic: hewins.org/jdh/?p=6185 […]

  8. youtube likes | September 6, 2022 at 7:06 PM | Permalink

    … [Trackback]

    […] Read More on to that Topic: hewins.org/jdh/?p=6185 […]

  9. Text inmate | September 7, 2022 at 6:46 AM | Permalink

    … [Trackback]

    […] Read More Information here to that Topic: hewins.org/jdh/?p=6185 […]

  10. Long Beach Multifamily Investments | September 8, 2022 at 6:03 AM | Permalink

    … [Trackback]

    […] Read More to that Topic: hewins.org/jdh/?p=6185 […]

  11. benelli m4 | September 8, 2022 at 8:57 AM | Permalink

    … [Trackback]

    […] Read More on that Topic: hewins.org/jdh/?p=6185 […]

  12. plantashun boiz | September 8, 2022 at 11:56 AM | Permalink

    … [Trackback]

    […] Here you will find 82806 more Information on that Topic: hewins.org/jdh/?p=6185 […]

  13. … [Trackback]

    […] Read More to that Topic: hewins.org/jdh/?p=6185 […]

  14. remington guns | September 9, 2022 at 11:02 AM | Permalink

    … [Trackback]

    […] Find More here to that Topic: hewins.org/jdh/?p=6185 […]

  15. her explanation | September 9, 2022 at 6:24 PM | Permalink

    her explanation

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  16. garden city homes for sale | September 9, 2022 at 6:53 PM | Permalink

    … [Trackback]

    […] Find More Info here on that Topic: hewins.org/jdh/?p=6185 […]

  17. luxury condos orange beach al | September 9, 2022 at 7:08 PM | Permalink

    … [Trackback]

    […] Read More on that Topic: hewins.org/jdh/?p=6185 […]

  18. visit here | September 9, 2022 at 10:51 PM | Permalink

    visit here

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  19. this article | September 10, 2022 at 1:53 AM | Permalink

    this article

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  20. read this | September 10, 2022 at 6:16 AM | Permalink

    read this

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  21. buy benelli guns online | September 10, 2022 at 8:53 AM | Permalink

    … [Trackback]

    […] Find More Information here on that Topic: hewins.org/jdh/?p=6185 […]

  22. assistência informática | September 10, 2022 at 12:09 PM | Permalink

    … [Trackback]

    […] Read More here on that Topic: hewins.org/jdh/?p=6185 […]

  23. website here | September 11, 2022 at 1:19 PM | Permalink

    website here

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  24. Medicare Advantage plans in Maryland | September 12, 2022 at 3:14 PM | Permalink

    … [Trackback]

    […] Find More on on that Topic: hewins.org/jdh/?p=6185 […]

  25. Xosoketqua | September 13, 2022 at 7:57 AM | Permalink

    … [Trackback]

    […] Here you can find 60511 additional Information to that Topic: hewins.org/jdh/?p=6185 […]

  26. official site | September 13, 2022 at 8:41 AM | Permalink

    official site

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  27. refinansiering av lån er et viktig verktøy | September 13, 2022 at 1:03 PM | Permalink

    … [Trackback]

    […] Information on that Topic: hewins.org/jdh/?p=6185 […]

  28. 다시보기 | September 13, 2022 at 7:33 PM | Permalink

    … [Trackback]

    […] Read More on that Topic: hewins.org/jdh/?p=6185 […]

  29. jobs | September 13, 2022 at 7:51 PM | Permalink

    … [Trackback]

    […] Read More Information here to that Topic: hewins.org/jdh/?p=6185 […]

  30. Bassetti Handtuch | September 15, 2022 at 6:21 AM | Permalink

    … [Trackback]

    […] Find More on to that Topic: hewins.org/jdh/?p=6185 […]

  31. coral springs zip code map | September 18, 2022 at 4:23 AM | Permalink

    … [Trackback]

    […] Read More on on that Topic: hewins.org/jdh/?p=6185 […]

  32. sbo | September 18, 2022 at 5:38 AM | Permalink

    … [Trackback]

    […] Info on that Topic: hewins.org/jdh/?p=6185 […]

  33. https://simdaiphat.vn/ | September 20, 2022 at 5:41 AM | Permalink

    … [Trackback]

    […] Here you can find 27942 additional Information to that Topic: hewins.org/jdh/?p=6185 […]

  34. Firearms For Sale | September 20, 2022 at 6:58 PM | Permalink

    … [Trackback]

    […] Information to that Topic: hewins.org/jdh/?p=6185 […]

  35. chiappa firearms for sale | September 20, 2022 at 7:12 PM | Permalink

    … [Trackback]

    […] Read More on that Topic: hewins.org/jdh/?p=6185 […]

  36. buy magnum research gun | September 20, 2022 at 7:25 PM | Permalink

    … [Trackback]

    […] Read More to that Topic: hewins.org/jdh/?p=6185 […]

  37. 홀덤 | September 21, 2022 at 7:16 PM | Permalink

    … [Trackback]

    […] Here you will find 29060 more Information on that Topic: hewins.org/jdh/?p=6185 […]

  38. cz 75 compact pcr For Sale | September 21, 2022 at 7:19 PM | Permalink

    … [Trackback]

    […] Here you can find 13560 more Info on that Topic: hewins.org/jdh/?p=6185 […]

  39. 足球運彩 | September 21, 2022 at 7:28 PM | Permalink

    … [Trackback]

    […] Read More Info here to that Topic: hewins.org/jdh/?p=6185 […]

  40. Electricity Rates in Fort Worth | September 22, 2022 at 6:22 PM | Permalink

    … [Trackback]

    […] Read More on that Topic: hewins.org/jdh/?p=6185 […]

  41. บาคาร่า | September 22, 2022 at 6:50 PM | Permalink

    … [Trackback]

    […] Find More to that Topic: hewins.org/jdh/?p=6185 […]

  42. Cá độ thể thao World Cup | September 22, 2022 at 7:14 PM | Permalink

    … [Trackback]

    […] Read More on to that Topic: hewins.org/jdh/?p=6185 […]

  43. check my reference | September 23, 2022 at 5:13 AM | Permalink

    check my reference

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  44. Umzugskartons | September 23, 2022 at 3:30 PM | Permalink

    … [Trackback]

    […] Information on that Topic: hewins.org/jdh/?p=6185 […]

  45. take a look at the site here | September 24, 2022 at 1:33 AM | Permalink

    take a look at the site here

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  46. how does software development work | September 26, 2022 at 10:10 AM | Permalink

    … [Trackback]

    […] Read More to that Topic: hewins.org/jdh/?p=6185 […]

  47. our website | September 29, 2022 at 11:59 AM | Permalink

    our website

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  48. learn to surf newquay | October 1, 2022 at 11:06 PM | Permalink

    learn to surf newquay

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  49. try this website | October 12, 2022 at 3:16 AM | Permalink

    try this website

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement

  50. site web | October 15, 2022 at 8:59 AM | Permalink

    site web

    JDH : Can Continued Employment Be Sufficient Consideration For A Non-Compete Agreement