What should I do if my employee refuses to sign a non-compete agreement in Texas?

As a lawyer, my advice for an employee who refuses to sign a non-compete agreement in Texas is as follows:

1. Understand the Law: Non-compete agreements are generally enforced in Texas, however, there are certain legal principles that must be followed in order for the agreement to be valid and enforceable. For instance, the agreement must be supported by consideration, not impose undue hardship on the employee, and be reasonable in scope.
2. Discuss the Reasons Behind the Refusal: Prior to taking any legal action, you should try to understand why the employee refuses to sign the agreement. Perhaps they have concerns about the scope of the restrictions or the impact on their ability to work in their field. By understanding the reasons, you may be able to address the employee's concerns and negotiate a mutually agreeable compromise.
3. Consider Negotiation: Rather than taking legal action immediately, you may be able to negotiate a compromise that addresses both the employer's and employee's concerns. This may involve modifying the agreement to limit the scope of the restrictions or modifying the compensation package.
4. Seek Legal Advice: If negotiation fails, you should seek the advice of a licensed attorney to determine your legal options. An attorney can review the agreement to determine if it is valid and enforceable, and develop a strategy to address the employee's refusal.
5. Consider Legal Action: If negotiation and legal advice do not result in a resolution, the employer may need to take legal action such as filing a lawsuit for breach of contract or seeking an injunction to prevent the employee from engaging in competitive activities.

Limitations/Exceptions: There may be certain exceptions to the enforceability of non-compete agreements in Texas, such as for physicians, attorneys, and certain salespersons. Additionally, if the agreement is found to be overly restrictive or impose undue hardship on the employee, it may not be enforced.

Suggestions for Further Action: If the employee continues to refuse to sign the agreement, the employer may need to consider termination of the employment relationship. Additionally, to avoid potential legal issues, employers should ensure that any non-compete agreements are clear, reasonable, and supported by adequate consideration.