FYI for Texas residents: Texas is an “at will” state which means that your employer can fire you at any time. It also means that you can quit any time. Contracts like this are unenforceable and illegal in Texas. It is also illegal to hire somebody as a 1099 contractor and have that person fulfill a full time job. The only way that a contract like this is enforceable in Texas is via a corp-to-corp contract in which you, the contractor, start your own company and that company enters into a legally binding contract with the employer. If you choose to do that, I recommend opening a c-corp, not an LLC, specifically for that contract (assuming it’s worth it). If you decide to quit, and they decide to sue your corporation, just dissolve it and let them go fuck themselves.
Texas has a lot of problems but it does a good job of protecting the ability to do business with minimal shenanigans.
EDIT: The Texas Workforce Commission is nothing to fuck with.
I’m pretty sure all states have a variation of this. However you need to go to court to enforce it and that us expensive and difficult enough even if you win such as to scare people from trying .
Texas is pretty strict about this. You would have a difficult time even filling the suit. The most employers can do is send threatening letters from a law firm but they have no teeth.
Source: Business owner in Texas for 25 years.
