Category: Employment Agreements in Texas

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…

At-Will Employment in Texas – What Does it Mean?

In Texas, employment is presumed to be at-will. This means that, absent a specific agreement to the contrary, employment may be terminated by the employer or the employee for any reason at any time. An employer may modify at-will employment but only if it…

Non-Compete Agreements – Good or Evil? The US Government Says They Are Both.

In March 2016, the Office of Economic Policy of the U.S. Department of the Treasury issued a report titled “Non-Compete Contracts: Economic Effects and Policy Implications.”  According to the report, an estimated 18% of all workers, or nearly 30 million people, are covered by non-compete…

A Former VP of Operations Ordered to Pay $1.9 Million for Taking Company’s Trade Secrets in Violation of a Separation Agreement

According to some studies, more than 60% of employees copy their employers’ documents or files before leaving their employment. They are even more likely to do so if they had been laid off, fired, or passed over for promotion. With senior executives who have access to top level…