My employment was terminated. That means my non-compete agreement goes away, right? I am often contacted by folks whose employment has been terminated. They reasonably assume that their non-compete agreement is no longer enforceable. In reality, that’s not always the case. There is no rule in Texas stating that if an employee is terminated, rather than quits, a noncompete...
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 ReadingWhat is a Non-Solicitation Provision? Texas non-solicitation provisions (aka. non-solicitation clauses or non-solicitation agreements) prohibit the employee, both during employment, and for a period of time thereafter, from soliciting the employer’s clients, employees, or both. Texas employment agreements frequently contain non-solicitation provisions, along with non-compete provisions and non-disclosure provisions. But whether a particular act or communication constitutes solicitation is not always...
Continue Reading“An oral contract is as good as the paper it is written on.” This is simply not true in Texas. In fact, a Texas jury awarded $11 billion dollars in damages to Pennzoil when Texaco interfered with an oral contract for the sale of Getty Oil to Pennzoil, one of the largest jury verdicts in U.S. history. While it...
Continue ReadingMany wars have been fought in Texas courts over the enforceability of non-compete agreements. But relatively few have been waged over the enforceability of Texas non-disclosure agreements. The reasons for this are many, including the fact that Texas courts have routinely held that, unlike noncompete agreements, nondisclosure agreements do not restrain trade; hence, they are far more enforceable. Also,...
Continue ReadingWhat is a Trade Secret Under Texas Law? Every business has some amount of confidential and proprietary information that it does not want its competitors to know. When someone uses a business’ confidential information without consent or threatens to do so, filing a claim for misappropriation of trade secrets is one way for a business to protect its information. However, in...
Continue ReadingPhysician employment agreements are very prevalent. Unlike most Texas employees who are employed on an at-will basis, physicians typically have written agreements that can be worth hundreds of thousands, if not millions, of dollars. In our practice, we see many disputes between physicians and their employers from both sides of the fence. Quite often these disputes are between practices or institutions and...
Continue ReadingEmployees owe various duties to their employers, including a general duty of loyalty. This duty requires employees to act primarily for the benefit of their employer in all matters connected with their employment. Failure to do so may constitute a breach of fiduciary duty, or breach of the duty of loyalty. Examples of Employee Fiduciary Duty in Texas An employee...
Continue ReadingDoes the Texas noncompete statute apply to independent contractors as well as employees? Although there is not much case law on this, the answer is almost certainly yes. One case in particular out of the Fort Worth Court of Appeals dealt with a noncompete agreement dispute involving an independent contractor. Neither the company attempting to enforce the noncompete nor...
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...
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