Non-Solicitation Archives - Texas Noncompete Law

May 13, 2024 | By Robert Wood | Read Time: 2 minutes | #Non-Disclosure

How Does the FTC Noncompete Decision Impact Nonsolicitation and Nondisclosure Agreements in Texas?

Legal challenges notwithstanding, the recent ruling by the Federal Trade Commission (FTC) to ban noncompete agreements has sent ripples through the business and legal communities. As a Texas attorney specializing in noncompete law, I’ve received numerous questions from business owners, executives, and employers about how this federal decision impacts other types of employment agreements, specifically nonsolicitation and nondisclosure agreements....

Jul 8, 2022 | By Robert Wood | 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...

Mar 5, 2014 | By Robert Wood | Read Time: < 1 minute | #Non-Solicitation

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...

Apr 17, 2010 | By Robert Wood | Read Time: 2 minutes | #Non-Solicitation

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...

Apr 16, 2010 | By Robert Wood | Read Time: < 1 minute | #Non-Solicitation

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...

Apr 16, 2010 | By Robert Wood | Read Time: 2 minutes | #Non-Solicitation

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...

Mar 23, 2009 | By Robert Wood | Read Time: 2 minutes | #Non-Solicitation

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...