Non Compete Agreements in Texas

Does Constructive Discharge Affect Enforceability of Texas Noncompete Agreement?

May 18, 2010 / By Robert Wood
Articles // Non Compete Agreements in Texas

In a recent case in a federal district court in Texas, the defendants–individuals who had signed non-compete agreements with their previous employer–contended that their agreements should not be enforceable because they were "constructively discharged" (i.e., forced to resign).  The federal district court rejected this contention.  In doing so, the court noted that "termination of at-will employment does not…

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Texas Customer Solicitation Restrictions. Unfair Competition Law in Texas.

/ By Robert Wood
Articles // Non Compete Agreements in Texas

Texas noncompete agreements routinely contain a provision prohibiting an employee from soliciting, or doing business with, her employer’s customers (except on her employer’s behalf).  Not infrequently, these provisions preclude the employee from soliciting any of her employer’s customers.  However, some Texas cases have held that such provisions are too broad. Several Texas cases have held…

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Scope of Noncompete Agreements in Texas

/ By Robert Wood
Articles // Non Compete Agreements in Texas

Assuming a non-compete agreement in Texas is worded properly and supported by adequate consideration, the next question is whether the restrictions contained in the agreement are reasonable.  Texas courts have routinely held that the scope of the restrictions should bear some relationship to the activities that the employee performed for his former employer.  For example,…

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Stock Options in Texas Noncompete Agreements

/ By Robert Wood
Articles // Non Compete Agreements in Texas

A recurring issue in Texas law is whether financial compensation can constitute sufficient consideration for a non-compete agreement.  This issue came up recently in a case from the Dallas Court of Appeals. In that case, a company that provided insurance brokerage services granted some stock options to one of its managing directors.  The options were…

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Relationship Between Trade Secrets and Confidential Information

/ By Robert Wood
Articles // Non Compete Agreements in Texas

In determining whether a non-compete agreement is enforceable, a Texas court will assess whether the consideration given by the employer justifies the non-compete agreement. Texas courts have held on multiple occasions that an employer’s providing of confidential information is sufficient consideration for a non-compete agreement. Even without an enforceable non-compete agreement, a Texas employer has…

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Is Texas a Right to Work State? Texas Supreme Court Makes Noncompete Agreements Easier to Enforce.

May 16, 2009 / By Robert Wood
Articles // Non Compete Agreements in Texas

The Texas Supreme Court recently made it even easier to enforce noncompete agreements.  Ever since the court’s opinion in the Sheshunoff case, it has been an open question whether, to be enforceable, a noncompete agreement must contain an explicit promise by the employer to provide confidential information to the employee.  In Mann Frankfort Stein &…

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