Non Compete Agreements in Texas

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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Texas Non-Compete Agreements: Is A Promise to Provide Confidential Information Required Anymore?

December 22, 2008 / By Robert Wood
Articles // Non Compete Agreements in Texas

 A recurring issue in non-compete cases involves how definite the employer’s promise to provide confidential information must be for the agreement to be enforceable.  Historically, disputes have focused on whether an explicit promise to provide the information was required, or whether an implied promise (e.g., language in which the employee "acknowledged" that he would receive…

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Texas Non-Compete Agreements: Confidential Information Need Not Rise to Level of Trade Secret

October 1, 2008 / By Robert Wood
Articles // Non Compete Agreements in Texas

A recent case from the federal court in Dallas sheds some light on various issues involving the enforceability of non-compete agreements. In Staples, Inc. v. Sandler, No. 3:07-CV-0928-K, 2008 WL 4107656 (N.D. Tex. Aug. 29, 2008), the employee, Sandler, upon joining Staples, Inc., signed a “Proprietary and Confidential Information Agreement” and a separate “Non-Compete and…

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Texas NonCompete Agreements: Court Rules Explicit Promise Not Required

July 29, 2008 / By Robert Wood
Articles // Non Compete Agreements in Texas

Almost two years ago, in the Sheshunoff case, the Texas Supreme Court rejected the notion that an employer must provide the employee with confidential information at the precise moment the non-compete agreement is signed for the agreement to be enforceable. According to the court, it is not fatal to the agreement’s enforceability if the information is…

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