Category: Employment Agreements in Texas

Can an employer require employees to repay training costs in Texas?

Generally, training repayment provisions in employment agreements are enforceable in Texas.  Employers should make sure that such clauses are written in a clear and understandable manner and are not hidden within employment contracts.   When determining the parameters of the reimbursement policies, companies should make sure that they comply with the Texas Texas Free Enterprise and Antitrust Act of 1983, which prohibits the restraint on trade.

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.

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…

Texas Non-Competes Soon Will Be Unenforceable in California

With so many companies moving their headquarters from California to Texas in the recent years, non-compete disputes involving employees and employers who have ties to both states have multiplied.   In these types of cases, one of the first questions the courts ask is which state’s…

Fox Goes to War with Netflix Over Two Programming Executives Who Jumped Ship

In a move that suggests that Fox might be feeling the burn of Netflix competition, the network Goliath has recently sued the king of online streaming over hiring of its two programming executives.  In the lawsuit, Fox claims that Netflix induced these employees to breach their employment agreements with Fox…

The Difference Between Non-Competition and Non-Solicitation Restrictions

Some states prohibit these restraints in employment contracts completely. Others allow one but not the other. Texas allows both. These restrictions on employees are meant to protect employers’ investment in their employees and confidential information shared with them during their employment.  A prudent employer will use one…

Are Non-Compete Agreements Enforceable in Texas?

Generally, Texas allows non-compete agreements between employers and employees as long as they are reasonable in scope, geographic area, and term, and meet a few other requirements. See my previous posts about those requirements here, here, and here.  Practically speaking, however, whether a particular non-compete agreement…

Texas Employment Hiring Checklist

Whether a new business is preparing to hire its first employee or is revisiting its already-existing hiring procedures, making sure that the on-boarding process is done correctly and consistently will result in significant long-term benefits in terms of reducing stress associated with hiring new…

Erasing Employer Files Costs Employee Severance Pay

The Fifth Circuit Court of Appeals, which presides over Texas, Louisiana, and Mississippi, recently held that an employer could deny employee his severance benefits under an ERISA benefits plan because the employee erased certain files from his computer before returning the laptop to the…

A Texas Company Loses a Non-Compete Battle Against California Employees

California and Texas differ in many respects, including how they treat non-compete agreements.  While Texas enforces non-compete restraints that are reasonable, California has declared such agreements unenforceable.  Recently, a company headquartered in Texas attempted to enforce its non-compete agreements against two California employees.  The…