A Texas appellate court recently held that a provision conditioning a physician’s right to receive 50% of accounts receivable on practicing outside a 20-mile radius was not a covenant not to compete. Afzal v. Ramineni offers an important lesson for Texas physicians about the difference between a true non-compete and compensation that can be forfeited when a physician competes.
When people think of non-compete agreements in Texas, they usually picture contracts that say “you can’t work for a competitor.” But employers often use something
Many major hospital chains in Texas require their physicians to sign non-compete agreements. Despite all the talk about how the federal government is going to
If you’re an employee in Texas and you’re bound by a non-compete agreement, you may wonder if you can argue that the agreement is “unfair” and win. The answer is yes, at least in some cases. In a recent case, a Texas Court of Appeals found that it would be unfair to enforce a 1-year non-compete agreement against an employee who only worked for his employer less than 5 months and was let go without cause.
Many non-compete agreements in Texas often include employee non-solicitation restraints, which prohibit departing employees from soliciting their co-workers to leave with them. Whereas non-competition restraints
States around the country vary in how they approach the enforcement of unreasonable non-compete agreements. While the majority of states allow their courts to “blue pencil” or rewrite restrictive covenants to make them reasonable, three states do not permit such reformation, and four states have no clear legal guidance on whether blue-pencilling is permitted, leaving employers in limbo.
