Worldwide or global non-compete agreements with key employees can be enforceable where they are related to legitimate business interests, employees’ duties include a substantial exposure
Unlike many other states around the country, Texas did not see any drastic changes in its non-competition laws in 2018. However, out of a 100 + cases involving non-competition disputes, the following handful stand out either because they addressed a novel issue or clarified an area of confusion in this gray area of the law.
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.
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.
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.
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