A good non-solicitation and confidentiality agreement, combined with other key provisions, and smart business practices, can deter client poaching and preserve the relationship between the salon and its clients even in the face of its employees’ departure.
The Fifth Circuit Court of Appeals recently considered whether a travel agency’s noncompete agreement with its employee was enforceable under Texas law. It concluded that because the agreement did not have geographic limits, was not limited to the travel agency’s customers with whom the employee actually worked during her employment, and included entire travel agency industry, the non-compete was unenforceable.
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.
Last week, the Fifth Court of Appeals of Texas in U.S. Risk Insurance Group, Inc. et al. v. Woods reminded us again that a non-competition agreement must be reasonable and
In Nitro-Lift Techs., L.L.C. v. Eddie Lee Howard, et al., the U.S. Supreme Court once again expressed its strong support of the Federal Arbitration Act (FAA), in finding that