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Singed noncompete clause 2yrs ago w/former employer (wouldnt help recruit new firm). Newfirmneedspeople legal?

Is it legal for a company to force an employee not to leave if a former employee helps a new firm recruit? I have gone onto Westlaw and found nothing specific enough to brove my understanding that this is illegal - a firm cannot restrict competion in the market (labor market in this situation). This is also in Texas, and 'right to work' state, or employment at will state. My new firm needs staff and I want to 'cover my bases' by finding laws or cases to help in the case that some people leave my old firm based on my giving the new firm their name and number.

Public Comments

  1. I could understand you better if you rephrased your specific question.
  2. Non-compete clauses are legal, and the employer can sue an employee who is in breach of his contract. You mentioned you signed your contract (or a non-compete amendment to it) two years ago, but not the length of time an ex-employee has to wait before going to work for a competitor. Your only way out is if the time period is unreasonable. Six months to a year would be reasonable in most businesses. With some types of retail businesses, the employer can keep ex-employees from setting up shop within 2 or more miles of their premises.
  3. This is a complicated issue. Non-compete clauses have some legal basis, but they often try to overstretch what they can really do. People do have the right to work and they can't sign away their right to earn a living. But employers can demand that you don't get trained, learn all their trade secrets, familiarize yourself with product lines and customers, and then go start a new firm and use all this information to compete with them. Usually where the agreement breaks down is length of time and geographic restrictions. If your new firm is far away then noncompete isn't really valid. Or if you quit five years ago they can't really getcha. If you quit 3 months ago and are now recruiting their employees you should watch out. If their employees contact *you* and not the other way around you are probably in the clear (but their employees may not be)
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