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I thought a non-compete was just a scare tactic until a former employee cost me $40,000

For years, I ran my small marketing firm in Austin without making new hires sign non-competes. I figured they were just legal bullying and wouldn't hold up. Then, a project manager I let go in January took our biggest client's campaign plan and started his own shop with it. My lawyer said a well-written non-compete could have stopped him cold, but without one, I had no real case. The client left, and I lost that revenue over six months. Has anyone else been burned by skipping this, or found a fair way to write one that actually protects a business?
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3 Comments
brian_smith6
Honestly non-competes are still mostly scare tactics that just hurt regular workers. That guy was gonna steal your stuff anyway, a piece of paper wouldn't have changed that.
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riley43
riley4314d ago
Texas law is really strict on non-competes. They have to be reasonable in time, geography, and scope to be enforced. A blanket one that stops someone from working anywhere for two years won't hold up. You need it to be specific, like not taking clients you personally worked with for one year.
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alexk60
alexk6014d agoMost Upvoted
My old boss learned that lesson for $80k.
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