While a non-solicitation clause that prohibits a sales employee from soliciting all company customers may sometimes be justified, most of the time it is much more reasonable to limit the non-solicitation restraint only to the customers and prospective customers with whom the sales employee directly interacted rather than every customer in the company’s database.
Category: Employment Agreements in Texas
Texas Supreme Court Clarifies When Employers are Responsible for Employees’ Negligence
In Texas, an employer can be held liable for its employees’ negligence if, at the time of the accident, the worker was an employee (not an independent contractor) and was acting in the course and scope of his employment.
A Texas Court of Appeals Explains Employees’ Fiduciary Duties in Texas
Employees owe a duty of loyalty to their employer and may not: (1) appropriate company trade secrets; (2) solicit away the employer’s customers while working for the employer; (3) solicit the departure of other employees while still working for the employer; (4) carry away confidential information.
An Injunction in a Theft-of-Trade-Secrets Case Cannot Prohibit a Party From Using Publicly Available Information
A court order prohibiting defendant from using trade secrets must be broad enough to cover all possible circumstances while narrow enough to include only the illegal activities. Where that line lies depends on the circumstances of each particular case.
Trump’s Tax Reform Affects Settlements of Sexual Harassment Claims, But Training Remains the Best Answer
The Tax Cuts and Jobs Act prohibits companies from claiming tax deduction for confidential settlements paid for sexual harassment and abuse and the related lawyer’s fees.
Texas Companies Should Update Non-Compete Agreements with California Employees in Light of a New Statute
Any Texas companies that have employees who primarily work and reside in California, should update their non-compete agreements with such employees to meet the requirements of the California Labor Code Section 925.