| Read Time: 3 minutes | #Physician Contracts

Buyout Options are Mandatory Under Physician Noncompete Statute in Texas

In 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...

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| Read Time: 2 minutes | #Non-Solicitation

Are Non-Solicitation Agreements Enforceable in Texas?

What 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...

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| Read Time: 2 minutes | #Contracts

Are Verbal Contracts Enforceable in Texas?

“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...

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| Read Time: 3 minutes | #Non-Disclosure

When is a Texas Non-Disclosure Agreement Actually a Non-Compete?

Many 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,...

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| Read Time: 3 minutes | #Trade Secrets

Understanding the Texas Uniform Trade Secrets Act

What 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...

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| Read Time: 5 minutes | #Physician Contracts

Physician Employment Agreements in Texas

Physician 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...

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| Read Time: 2 minutes | #Fiduciary Duty

Breach of Fiduciary Duty in Texas

Employees 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...

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| Read Time: < 1 minute | #Noncompete Agreements

Do Texas noncompete agreements apply to independent contractors?

Does 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...

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| Read Time: 4 minutes | #Physician Contracts

10 Tips for Negotiating Your Physician Employment Contract

Whether 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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| Read Time: 2 minutes | #Noncompete Agreements

Do I need to have my employees sign non compete agreements?

Does 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...

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