Restrictive Covenants

Texas Non-Compete Agreements: Practical Considerations

October 9, 2006 / By Robert Wood
Articles // Restrictive Covenants

Practical considerations in this area of the law include the following:   For the Former Employer : 1.  In addition to (or in lieu of) a non-compete provision, an employment agreement may contain non-solicitation or employee raiding provisions. A non-solicitation provision typically prohibits a departing employee from soliciting his former employer’s customers. The "old" employer…

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Available Remedies in Texas Non Compete Cases

October 8, 2006 / By Robert Wood
Articles // Restrictive Covenants

An employer may be entitled to injunctive relief to enforce a non-compete agreement in Texas. To obtain permanent injunctive relief, it is not necessary to prove that, without an injunction, the promisee will suffer irreparable harm. But that is not the case with respect to temporary injunctive relief. Most courts hold that to obtain temporary…

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Texas Non Compete Agreements: Scope of Restrictions

October 7, 2006 / By Robert Wood
Articles // Restrictive Covenants

A non-compete agreement in Texas must not impose upon the employee greater restraints than are necessary to protect the business and goodwill of the employer.  Moreover, the scope must bear some relationship to the activities of the employee.  It is generally permissible to keep an employee from soliciting business from customers with whom he dealt…

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Enforceability of Texas Non Compete Agreements: “Ancillary” Requirement

October 6, 2006 / By Robert Wood
Articles // Restrictive Covenants

Once an otherwise enforceable agreement has been found to exist, the next question is whether the non-compete provision is "ancillary" to that otherwise enforceable agreement. Texas courts have made it clear that the following must be true for a covenant not to compete to be ancillary to an otherwise enforceable agreement:   •The consideration given…

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Texas Non-Compete Agreements: Otherwise Enforceable Agreement

October 5, 2006 / By Robert Wood
Articles // Restrictive Covenants

Non-competition covenants are typically contained in written (employment) agreements that contain many other provisions. The first step in determining whether an enforceable non-compete agreement exists is to mentally draw a line through the non-compete provision and examine the remaining provisions. The pertinent question with respect to the remaining provisions is: Have both the employer and…

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Labor Laws Texas. Texas Non Compete Agreements: Other Common Provisions

October 3, 2006 / By Robert Wood
Articles // Restrictive Covenants

Texas non-compete agreements often contain various other provisions, including the following:   Choice of Law.  Non-compete agreements typically will specify which state’s law will decide whether, and the extent to which, a non-compete agreement is enforceable. Even in cases in which the parties have agreed that the law of a state other than Texas will…

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