[TX] [TX] Is the non-compete I signed valid and enforceable?
My previous employer terminated my employment. I am now being sent a cease and desist letter and want to verify the validity.
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We have to look at how a court would rule:
- You're outside the 15-mile restricted zone, which is the exact boundary they set, so you’re not breaching that.
- Texas courts don't always love non-compete agreements; they’ll only enforce them if they’re truly necessary to protect legitimate business interests. Your actions — no client poaching, no use of confidential info, and no competition within the restricted zone — don’t scream “unfair” or “threatening” to their business.
- Plus, your entity was formed before you were even hired, which shows you had entrepreneurial plans in place that weren’t born out of taking anything from them.
- And given you only worked there for about six months, it’s hard to argue they handed you some secret sauce worth locking you down over for two whole years.
A court might find this clause too broad or unnecessary, especially since you’re just trying to make a living without targeting their turf.
So here’s what you need to do — you can respond with something like this:
“I’ve reviewed the agreement and taken care not to violate it. My business operates entirely outside the restricted 15-mile radius. I have not solicited any of your clients, and I’m not using any confidential or proprietary information. I’m working independently and lawfully to build a business based on my own experience in the industry. If you believe otherwise, I’m open to discussing your concerns in detail, but I will continue operating within my legal rights.”
I'd leave it at that. Does that help clarify things? I want to make sure I didn’t leave anything out.
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My previous employer terminated my employment. I am now being sent a cease and desist letter and want to verify the validity.
Lexi, Chatbot
I'm sorry to hear about your situation with your previous employer; that can be very stressful. Can you tell me when your employment was terminated?
June 15th.
Lexi, Chatbot
Have you received any specific reasons for the cease and desist letter from your former employer?
A signed Confidentiality Agreement.
Lexi, Chatbot
Is there anything else the employment lawyer should know before I connect you? Rest assured they’ll be able to help with your cease and desist letter.
Yes
Michael M. Esq.
Hello! My name is Michael, and I'm an attorney ready to help! Your responses matter to me, so I only need a few minutes to review and respond to each of your posts. What is it they want you to stop doing?
I have been in the insurance industry since 2021. I established an entity for an agency I wanted to launch in 2024, but never dedicated the time to grow it and focus on it. I continued my career in the insurance industry until I was terminated June 15th. Since then, I have made steps to try and launch my agency, and they are sending me a cease and desist letter.
Michael M. Esq.
Ok thanks! Just a few more questions. Did your confidentiality agreement include any non-compete or non-solicitation provisions, or restrict starting a competing business after termination?
I believe the agreement includes a non-compete. Basically, I’m not allowed to work for or be involved in any competing insurance business (selling, marketing, or advising on insurance products) in pretty much any role, whether as an employee, owner, consultant, etc. This restriction lasts for 2 years after I leave.
It states that the restricted area is “a 15-mile radius of the Company offices. These areas include and may be expanded from time to time by the geographical expansion of the Company, and shall include all areas for which the Company conducts business.”
Michael M. Esq.
Understood! So you're just wondering what you need to do here, correct?
If the agreement is enforceable, I don’t want to risk violating it. But if there’s a chance it’s not valid, I’d like to understand my options moving forward.
Michael M. Esq.
Ok thank you so much for including that! Are you working within that geographical area?
The office is precisely 32 miles away from me.
More than the stated “15-mile radius.”
Michael M. Esq.
Ok, I’ve got what you’re getting at here! Were there any other facts you'd like to add before I answer your question?
I am not competing within 15 miles of Quote Texas’s office, although I have an online presence outreaching all over Texas. I have not solicited any of their clients and have not used or retained any proprietary information from my former employment. I am operating independently, building my business solely on my general industry knowledge and standard insurance practices. I was hired in 01/2025 and terminated in 06/2025; my entity was formed in 04/2024.
Michael M. Esq.
Ok! I just need a little time to draft up a high-quality answer. I'll be with you as soon as possible. It won't be terribly long, ok?
Michael M. Esq.
I'm so sorry about this situation! I want to address your situation with a detailed response, so if you have any questions, don’t hesitate to ask because this law stuff can get complicated.
Michael M. Esq.
We have to look at how a court would rule:
- You're outside the 15-mile restricted zone, which is the exact boundary they set, so you’re not breaching that.
- Texas courts don't always love non-compete agreements; they’ll only enforce them if they’re truly necessary to protect legitimate business interests. Your actions — no client poaching, no use of confidential info, and no competition within the restricted zone — don’t scream “unfair” or “threatening” to their business.
- Plus, your entity was formed before you were even hired, which shows you had entrepreneurial plans in place that weren’t born out of taking anything from them.
- And given you only worked there for about six months, it’s hard to argue they handed you some secret sauce worth locking you down over for two whole years.
A court might find this clause too broad or unnecessary, especially since you’re just trying to make a living without targeting their turf.
So here’s what you need to do — you can respond with something like this:
“I’ve reviewed the agreement and taken care not to violate it. My business operates entirely outside the restricted 15-mile radius. I have not solicited any of your clients, and I’m not using any confidential or proprietary information. I’m working independently and lawfully to build a business based on my own experience in the industry. If you believe otherwise, I’m open to discussing your concerns in detail, but I will continue operating within my legal rights.”
I'd leave it at that. Does that help clarify things? I want to make sure I didn’t leave anything out.
Yes, that helps a lot. I should draft a professional letter to their attorneys, correct?
Michael M. Esq.
Yes, that's correct!
Thank you.
Michael M. Esq.
For sure! Did I thoroughly address your question? Did I provide top-tier service to you? If the answer is no to either, please let me know so I can help!
You did, thanks again.
Michael M. Esq.
Thank you so much for contacting us! We're happy to help whenever you need it.
Michael M. Esq.
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