Over the past decade, Attorney Robert Wood has published hundreds of articles on the Texas Contract & Noncompete Disputes Blog, establishing himself as an authority on Texas noncompete law. If you want to gain a better understanding of how non-compete and other contractual issues are handled in the Texas courts, you’re in the right place.
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If you run a small business you look to control expenses wherever you can. And if you are going to ask your employees to sign a non-compete agreement, you are probably tempted to use a templated noncompete agreement rather than paying an attorney to draft one for you. Here are our two cents: It’s going to be much more...
Continue ReadingIn Texas, physician noncompetes differ from noncompetes in any other industry in several respects. The primary difference is this: The Texas noncompete statute requires that the physician be given the option to buyout of the noncompete if the physician wishes to do so. This “option to buyout” is mandatory under Texas law. Often, if a physician leaves a medical...
Continue ReadingThis is a topic that occasionally comes up with respect to geographic limits on Texas noncompetes. If the noncompete provision contains a 10-mile geographic scope, does that mean ten miles measured in driving distance or ten miles through the air? Sometimes, this is an important distinction, because a particular point might be ten miles away through the air, but...
Continue ReadingWhether you are an experienced physician or you are just out of residency, you need to know how to negotiate a proper employment contract. Unfortunately, many physicians make serious mistakes when negotiating the terms of their employment, thereby putting themselves in a vulnerable position. Negotiating a physician employment contract is a deeply complex process. To protect your legal rights...
Continue ReadingDoes your company need to have its employees sign noncompete agreements? If your company fits into any of these categories, the answer is almost certainly “Yes.” I have clients that I need to protect. Some of these clients have been with me for years, and we have, through hard work over a period of time, developed good relationships with...
Continue ReadingIn Texas, a business and/or employer can bring a claim for misappropriation of trade secrets if a competitor or employee acquires a business’s trade secrets improperly or uses them without permission. Tantamount to establishing a misappropriation of trade secrets claim is establishing that a trade secret, in fact, existed. Under Texas law, a “trade secret” is defined as follows:...
Continue ReadingMany noncompete cases are filed after an employer learns that an ex-employee is violating his covenant not to compete. Sometimes, an ex-employee competes for several months before an employer discovers that the ex-employee is doing so. This is especially possible in an age in which much commerce is done via the internet. Thus, by the time an employer discovers...
Continue ReadingUnder Texas law, parties may only be entitled to recover their attorneys’ fees if permitted by statute, by a contract between the parties, or under equity. At times, there may be multiple avenues for a prevailing party to receive attorneys’ fees. However, at other times, a statute may preempt, or override, every other avenue to attorneys’ fees. Actions for...
Continue ReadingUnder Texas law, non-compete agreements involving a physician in some situations must include a handful of provisions (“requirements”) in order for the non-compete to be enforceable. One such requirement is that a physician non-compete agreement must contain a buyout provision. When must a buyout provision be included? Are requirements like buyout provisions required in all non-competes involving a physician,...
Continue ReadingWorldwide Geographic Restriction of Texas Noncompete Agreements May Be Enforceable Last revised: 10.17.16 In the past, Texas courts have not fully embraced the ability of a non-compete agreement to restrict an employee from working anywhere in the world. In several cases, Texas courts have held that the proper geographic scope of a noncompete agreement is the territory in which...
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