If an employment agreement entered after May 11, 2016, does not contain an immunity notice, employer can sue an employee for trade secrets misappropriation, but will not be able to recover its attorneys fees or obtain an award of punitive damages.
Since trade secrets are not registered with the government, like patents or trademarks, companies must take proactive measures to preserve them. Those who fail to take reasonable measures, risk finding out down the road (usually in court, when the try to recover stolen trade secrets from a rogue employee) that their information has lost its trade secrets status.
An employer cannot wrongfully breach a provision of an employment contract that is favorable to the employee (such as reducing his wages without his consent and without contractual authority to do so) an then go into a court of equity to secure, by injunction, the enforcement of another provision favorable to it.”
Both employers and employees are wondering how COVID-19 will affect the litigation of the non-compete disputes around the country and whether the courts will be more or less likely to enforce such agreements in light of the nationwide health emergency and the drastic economic downturn.
Many companies in Texas have non-competition agreements with their employees, but not all companies enforce them. Some companies will sue the departing employees for violating non-compete agreements, even thought such agreement may not be valid under Texas laws. Others, will not bother with enforcement even though they have valid agreements on hand. The reality is that the validity of a non-compete agreement is only one factor in a company’s decision whether to enforce it.
The Center for Disease Control and Prevention (CDC) just issued an Interim Guidance that pertains to “critical infrastructure workers,” who may have been exposed to COVID-19.
CDC advises that such workers may be permitted to continue work following potential exposure to COVID-19 as long as they remain asymptomatic and additional precautions are implemented to protect them and the community.