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I'm Robert Wood, a Texas litigation attorney. I’ve spent nearly the entirety of my 25+ year career drafting and analyzing non compete agreements. I use this blog to help Texas employers and workers understand the common misconceptions surrounding the enforcement of non-competes in Texas. If you have questions, please don’t hesitate to shoot me a message or give me a call at 469-754-2812.

Non Compete Agreements in Texas

Texas Noncompete Agreements Enforceable? More Clarification on How Definite Promise to Provide Must Be

May 19, 2008 / By Robert Wood
Articles // Non Compete Agreements in Texas

 A recent opinion issued by the federal Southern District of Texas sheds a little light on the question of how definite a promise to provide confidential information must be for a noncompete agreement to be enforceable. In Teel v. Hospital Partners of America Inc., No. H-06-3991, 2008 WL 346377 (S.D. Tex. Feb. 6, 2008), the court,…

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Texas Non-Compete Law: Can Duration of Non-Compete Agreements be “Equitably Extended”?

October 31, 2007 / By Robert Wood
Articles // Non Compete Agreements in Texas

In a recent Texas case involving a restrictive covenant, the plaintiff contended that the duration of the non-compete covenant should be judicially extended beyond the agreement’s normal expiration date. In that case, the seller of a dance studio entered into an agreement in which she promised not to compete with the buyer. As is true in most…

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Texas Executive Employment Agreements: Checklist for Employees

October 16, 2007 / By Robert Wood
Articles // Non Compete Agreements in Texas

Employees signing employment agreements in Texas should be mindful of the following potential terms:             1.         Term of Employment. Employment agreements are typically either for a fixed term or are at-will. An at-will agreement, obviously, can be terminated by either party at any time for any reason. Some agreements contain “Evergreen” provisions, which state that the term of…

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Enforceable Noncompete Agreements: Is At-Will Employment Really “Illusory”?

July 16, 2007 / By Robert Wood
Articles // Non Compete Agreements in Texas

Texas courts routinely hold that at-will employment is "illusory" consideration.  Because the employer is free to terminate the employee at any time, the courts reason, giving an at-will job to someone is, legally speaking, meaningless.  Thus, non-compete agreements in Texas based upon that consideration are unenforceable. Not all states agree.  While researching a noncompete matter…

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Noncompete Agreements in Texas: Forum Selection Provisions Are Enforceable

July 13, 2007 / By Robert Wood
Articles // Non Compete Agreements in Texas

Texas courts have long held that Texas law should determine whether non-compete agreements affecting Texas residents are enforceable.  As a result, Texas courts generally will not enforce out-of-state choice of law provisions.  However, as a recent Texas Supreme Court case illustrates, contractual forum selection provisions can alter that result. In Re AutoNation, Inc. involved a…

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Noncompete Agreements in Texas: Some Restrictions Are Overly Broad

July 12, 2007 / By Robert Wood
Articles // Non Compete Agreements in Texas

Non-compete agreements routinely provide for the employer to get injunctive relief in the event the employee engages in post-employment competition. In a recent case, the agreement in question subjected the employee to potentially harsher penalties.  The non-compete in question contained the following provisions: 14.     Restrictive Covenant. In consideration of the benefits being provided to the Employee pursuant…

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Texas Employment Agreements: To Obtain Reformation of Noncompete Agreements in Texas, Seek Injunctive Relief

May 30, 2007 / By Robert Wood
Articles // Non Compete Agreements in Texas

In a recent case in Houston, the First District Court of Appeals upheld a trial court’s failure to reform an overly broad covenant not to compete. The covenant was overly broad in three respects: (a) there was no geographical limitation; (b) the covenant prohibited the employee from contacting all of his former employer’s customers, not merely the…

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