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Non-Solicitation Agreements in Texas

What is a Non Solicitation Provision? Texas non-solicitation provisions (aka. non-solicitation clauses) prohibit the employee, both during employment, and for a period of time thereafter, from soliciting the employer’s clients, employees, or both. Texas non-compete agreements frequently contain non-solicitation provisions. But whether a particular act or communication constitutes solicitation is not always clear. “Solicitation” Defined So, what does it mean to “solicit”? One...

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Enforceability of Non-solicitation Clauses in Texas

Are Non-solicitation Clauses Enforceable in Texas? The answer is, they can be, but, like noncompete agreements, they must comply with the statutory requirements against unlawful restraints on trade. Just like a noncompete provision (which keeps an employee from having a certain type of job), a non-solicitation provision (which keeps an employee from soliciting his former employer’s clients), to be...

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In Texas, Nonsolicitation Provisions Must Be Reasonable

Even though noncompete and nonsolicitation provisions generally are enforceable in Texas, they must be reasonable in scope. In a recent case from the Fort Worth Court of Appeals, the court held that a provision prohibiting solicitation of employees was too broad and, therefore, unenforceable. The provision in question prohibited the employee, for a two-year period, from soliciting or employing...

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Enforcement of Non-Solicitation Agreements in Texas

A recent appellate case from Houston demonstrates that, in determining whether non-solicitation agreements are enforceable, Texas courts treat them as non-compete agreements. In the case, an insurance broker was bound by an employment agreement that contained the following provision: Accordingly, the Executive understands and agrees that for a period of two (2) years following the termination of his employment...

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Texas Customer Solicitation Restrictions. Unfair Competition Law in Texas.

Texas noncompete agreements routinely contain a provision prohibiting an employee from soliciting, or doing business with, her employer’s customers (except on her employer’s behalf).  Not infrequently, these provisions preclude the employee from soliciting any of her employer’s customers.  However, some Texas cases have held that such provisions are too broad. Several Texas cases have held that nonsolicitation provisions should...

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Permissible Scope of Nonsolicitation Agreements in Texas

Not infrequently, non-solicitation agreements that employers require their employees to sign are extremely broad. These provisions often preclude the employee from soliciting all of her former employer’s customers. Sometimes, the provisions also preclude the employee from soliciting her former employer’s potential customers. A recent case involved the following non-solicitation provision: Accordingly, the Executive understands and agrees that for a...

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Non-solicitation provisions must bear relation to employees’ activities

A recurring issue in employee mobility cases is the extent to which a non-solicitation provision in an employment contract is enforceable. Typically, an employment agreement will contain a provision prohibiting post-employment competition, provisions prohibiting post-employment solicitation of customers and/or employees, or both. It’s not uncommon for a provision prohibiting solicitation of employees to apply to all of the employers...

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