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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Temporary workers (“temps”) are a part of many businesses. Some companies use temps to fill a void left while an employee is on leave, others utilize temps in determining whether or not to offer a permanent position, and still others have temps as part of their everyday business functions. No matter what the reason is, when you bring a...
Continue ReadingAs readers of this blog know, noncompete agreements are increasingly enforceable in Texas. However, even in Texas, not all noncompete agreements comply with the statutory requirements. In a case decided a few months ago, the United States Court of Appeals for the Fifth Circuit, applying Texas law, held that a particular noncompete agreement was unenforceable. In that case, the...
Continue ReadingOver 70% of all businesses in the United States are sole proprietorships. A sole proprietorship is an unincorporated business that is owned and operated by a single individual. As a sole proprietor, you are entitled to 100% of the profits. However, you are also 100% personally responsible for all debts, losses, and liabilities. Many people choose to protect themselves...
Continue ReadingIt is said that imitation is the most sincere form of flattery. However, imitating a competitor’s trademark can lead to harsh consequences. Alternatively, allowing a competitor to imitate your trademark can damage your business. It is important to understand basic concepts of trademark infringement to prevent infringing, or being infringed upon. It is important to know that an unregistered...
Continue ReadingMany aspects of modern society are dependent upon computers. And computer fraud and abuse has become prevalent. For employers, it is important to have an employee computer access policy to protect your sensitive information. As an employee, knowing the limits of your authorized access is essential to avoiding adverse employment action. The Computer Fraud and Abuse Act is a...
Continue ReadingEmployees seeking to avoid a non-compete agreement when ending an employment relationship should ensure that their former employer explicitly releases them from the agreement. Such was the case in Try Hours, Inc. v. Douville, 2013 WL 139584 (Ohio App. 2013). In Try Hours, Inc., the Sixth Appellate District of the Ohio Court of Appeals held that an integration clause...
Continue ReadingIn Texas, non-compete agreements that arise from the sale of a business are relatively more enforceable than those that are contained in an employment agreement. For example, Texas courts have held that covenants not to compete may be significantly broader in scope if they arise from the sale of a business. However, as a recent case demonstrates, from the...
Continue ReadingHiring employees, training them, and granting them access to industry secrets or client lists exposes employers to the possibility that employees will utilize this valued information against them. In order to protect themselves, employers will often include a covenant not to compete provision in an employment contract, commonly known as a “non-compete.” However, it is important for both employers...
Continue ReadingWhen contracting with another party, it is essential to understand which state law will govern your contract in the event you find yourself in a contractual dispute. What might seem to be a reasonable provision, agreed upon by all parties, can be interpreted radically different depending upon the state law that will govern your contract. In legalese, choosing a...
Continue ReadingAn employee of a small manufacturing company (“Acme Company”) leaves and starts his own competing company (“Best Company”). Acme Company sues the employee for doing so—because the employee signed a noncompete agreement stating that, if he left Acme Company, he would not start a competing business. In the lawsuit, the employee argues, “The existence of my new company, Best...
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