Terms.Law Forum

Non-compete clause: accepted job with competitor in Texas

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Illustrative scenario prepared by my practice.
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Hypothetical question

On mobile so apologies for formatting. I'm a senior software developer in Dallas. I left my previous employer (a SaaS company) two months ago and just accepted a position at a competitor. The problem is, I signed a non-compete agreement when I was hired at my old company three years ago fwiw.

The non-compete says: I can't work for a competing company within a 50-mile radius for 2 years after leaving. The definition of "competing company" is pretty broad — basically any company that develops software in teh same market segment.

My old employer found out about my new job (probably through LinkedIn) and sent me a cease-and-desist letter threatening to sue for breach of the non-compete. I really need this new job — it's a 35% pay increase and a much better role. What are my options?

Illustrative response

Non-competes in Texas are governed by Texas Business & Commerce Code Section 15.50, and the good news is that Texas courts apply a reasonableness standard that may work in your favor....

For a non-compete to be enforceable in Texas, it must:

Key question: Did you have access to genuine trade secrets, customer lists, or proprietary information at your old employer? If your role was purely development work without access to confidential business strategy or customer data, the employer may struggle to show a legitimate protectable interest.

Illustrative response

AttorneyBrianCooper — I had access to the codebase but not to customer lists, pricing strategy, or business development plans. I was a developer, not a manager or sales person. I know how their software works technically, but so does anyone who uses the product.

The "competing company" definition in the agreement basically covers any company that develops CRM software. That's hundreds of companies. It would essentially ban me from the entire CRM industry for two years, which feels absurdly broad.