| Read Time: 7 minutes | #Noncompete Agreements

What’s the Deal with Non-Compete Agreements in Texas?

As a Texas attorney who frequently handles contract dispute matters involving non-compete agreements, one of the questions that I am asked more than any other (by both employers and employees) is:  Are non-compete agreements enforceable in Texas? The answer is: Yes, they can be. Texas law makes non-compete agreements enforceable if they are: Accompanied by or part of an...

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| Read Time: 2 minutes | #Noncompete Agreements

Are Texas noncompete agreements enforceable if the employee is terminated?

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...

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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: < 1 minute | #Noncompete Agreements

Calculating a Noncompete’s Geographic Scope: By Driving Distance, Or “As The Crow Flies”?

This is a topic that occasionally comes up with respect to geographic limits on Texas noncompetes. If the noncompete provision contains a 10-mile geographic scope, does that mean ten miles measured in driving distance or ten miles through the air? Sometimes, this is an important distinction, because a particular point might be ten miles away through the air, but...

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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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| Read Time: < 1 minute | #Noncompete Agreements

Can A Noncompete Be Extended If It Is Violated?

Many noncompete cases are filed after an employer learns that an ex-employee is violating his covenant not to compete. Sometimes, an ex-employee competes for several months before an employer discovers that the ex-employee is doing so. This is especially possible in an age in which much commerce is done via the internet. Thus, by the time an employer discovers...

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| Read Time: 3 minutes | #Noncompete Agreements

Who Can Get Attorneys’ Fees in a Non-Compete Action?

Under Texas law, parties may only be entitled to recover their attorneys’ fees if permitted by statute, by a contract between the parties, or under equity. At times, there may be multiple avenues for a prevailing party to receive attorneys’ fees. However, at other times, a statute may preempt, or override, every other avenue to attorneys’ fees. Actions for...

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| Read Time: 2 minutes | #Noncompete Agreements

Geographic Limitations on Texas Non Competes?

Worldwide Geographic Restriction of Texas Noncompete Agreements May Be Enforceable Last revised: 10.17.16 In the past, Texas courts have not fully embraced the ability of a non-compete agreement to restrict an employee from working anywhere in the world.  In several cases, Texas courts have held that the proper geographic scope of a noncompete agreement is the territory in which...

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| Read Time: 2 minutes | #Noncompete Agreements

Possible Tort Claim Not Sufficient Consideration for Noncompete in Texas

In recent years, Texas courts have shown support for the employer’s use of non-compete agreements. The courts have done so by finding certain requirements of enforceability implied in non-compete agreements in some circumstances. Despite this trend, in June 2015, the federal appellate court that covers Texas ruled that a duty to keep information confidential cannot be assumed into a...

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