Texas Non-Compete Law: Confidentiality, Just Like Beauty, Is In the Eye of the Beholder

In non-compete disputes in Texas, employers often argue that everything that they provided to employees was confidential, while employees argue that nothing that was provided to them was confidential. As the result, the issue of confidentiality often ends up being an ultimate “fact issue” that must be resolved by a judge or a jury.

Are Courts Actually Enforcing Non-Compete Agreements During the Pandemic?

While the enforcement of non-compete agreements around the country remains strong, the courts are looking closer at whether an employee will suffer “undue hardship” if his or her non-compete is enforced. Thus, employers should avoid taking unreasonable positions in court and be prepared to explain why enforcing a particular non-competition agreement will not prevent an employee from earning a living.

Non-Compete Agreements Related to a Sale of Business

In Texas, a 5 to 10 year non-compete agreement related to a sale of business is the norm. n addition to the non-compete restrictions in the sale documents, those sellers who stay employed by the buyer after the sale often sign a second non-compete agreement as part of their employment package, which does not kick in until after their employment with the buyer terminates.

How To Prevent Poaching of Your Business’s Employees

Many companies have been taking advantage of the economic turmoil caused by the pandemic to poach employee talent that they otherwise would not have been able to recruit or afford. Companies that have experienced layoffs, furloughs, salary reductions or bonus freezes, are particularly vulnerable to raiding attempts by their competitors.

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