Category: Non-Solicitation Agreements

Is Your Non-Compete Agreement Enforceable?

Enforcing non-compete agreements is as much of a business decision as it is a legal one. Having a non-compete agreement that is legally enforceable, allows you to decide whether it makes business sense to enforce it against a particular employee. Without a legally-enforceable non-compete agreement, however, the business reasons may not even matter.

2017 Welcomes Changes in Non-Compete Laws

This year, California, Illinois and Nevada amended their non-compete statutes to help protect employees’ right to change employers. Idaho, Maryland, Massachusetts, New York, and Washington considered various amendments, but were unsuccessful in signing them into law, which means they will probably try again in 2018.   

Can an Employee Prepare to Compete with His Employer While Still on the Employer’s Payroll?

In Texas, employees have the right to resign from employment and go into business in competition with their employers (absent a non-compete agreement). There is nothing legally wrong in engaging in such competition or in preparing to compete before the employment terminates. Thus, as…

Top 10 Mistakes Employers Make With Non-Compete Agreements

While helping hundreds of companies to enforce their non-compete agreements and advising many employees on how to get out of them, I noticed that most companies make the same mistakes when it comes to drafting and enforcing their non-compete agreements. Here are the top ten.

Enforcing Non-Compete Agreements in Arbitration in Texas

While an arbitration may generally provide a faster, cheaper, and more confidential route for resolving a noncompete dispute than litigation, it can be an inferior process when it comes to obtaining a temporary injunction in a situation where time is of the essence.

Is a Non-Compete Agreement Without Geographical Restriction Enforceable in Texas?

Until there is a ruling from the Texas Supreme Court resolving the issue of whether noncompete agreements must contain an express geographical limitation, to be safe, companies should include such limitation in the agreements in additional to any limits on client solicitation. Stay tuned to learn how the Texas Supreme Court rules on this issue.

Special Rules for Non-Solicitation Agreements in the Financial Services Industry

The financial services industry has its own set of rules when it comes to enforcement of non-solicitation agreements. In 2004, a handful of the largest financial firms signed a document called Protocol for Broker Recruiting. Since then, over a 1,000 firms became signatories to the Protocol, agreeing to abide by the rules that are meant to curtail non-solicitation litigation among competing firms.

Will Ban the Non-Competes Movement Lose Its Momentum During the Trump Administration?

It’s no secret that the Obama administration made a push, especially towards the end, towards limiting the use of non-compete agreements by employers around the country. The White House commissioned not one but two reports on this topic, both of which concluded that non-compete…

Five Non-Compete Agreements Myths in Texas for Employees

The old saying “ignorance is bliss” may be true in many situations, but not when it comes to non-compete agreements in Texas.  Over the years, I have identified five most common misconceptions about such agreements from my discussions with clients, friends, and even other…

A Texas Case Demonstrates Why Using Stock Non-Compete Agreements May Backfire

Last month, a Texas Court of Appeals denied an insurance agency’s application for a temporary injunction against its former President because it held that the non-compete agreement, as written, did not restrict the President from competing. The agency tried to enforce the non-compete and…