Category: Non-Compete Agreements in Texas

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. 

Top 5 Non-Compete Cases in Texas in 2017

Texas courts have issued several interesting opinions in 2017 regarding Texas non-compete law, explaining and defining when the Texas Covenants not to Compete Act applies and clarifying procedural mechanisms and remedies in non-compete disputes.

The Fifth Circuit Rules that Federal Law Preempts Unfair Competition Claim Under Texas Law

The Fifth Circuit recently considered whether the federal copyright and patent laws preempt (trump) Texas common law claim of unfair competition by misappropriation.

A Famous Dallas Chef Defeats an Injunction Based on “Unclean Hands” Defense, Can Now Use His Name

The unclean hands defense “allows a court to decline to grant equitable relief, such as an injunction, to a party whose conduct in connection with the same matter or transaction has been unconscientious, unjust, or marked by a want of good faith, or one who has violated the principles of equity and righteous dealing.”

Buc-ee’s Repayment Provision in the Employment Agreement Is Declared Unlawful, Likened to Indentured Servitude

In Texas, covenants limiting employees’ professional mobility are unlawful restraints on trade unless they fall within the exception created by the Covenants not to Compete Act.

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…

When Stopping Competition with A Temporary Injunction, It Pays To Be Precise

A lot of times a company rushes to court asking the judge to stop a former employee or his new employer from using the company’s confidential information or soliciting its customers based on the agreements that the former employee had signed with the company.