A cease-and-desist letter typically demands that an employee or a business stop doing something. The letter often threatens a legal action if the recipient does
While some states automatically make non-compete agreements invalid if a worker is terminated “without cause,” laid off, or is part of a reduction in force, many others do not. Even if a lay off does not automatically invalidate an employee’s non-compete agreement, other circumstances may render the non-compete agreement invalid.
Employment agreements will generally state whether an employee can engage in other jobs while working for an employer. Some employment agreements contain what is commonly called No Moonlighting clause, which will explain whether an employee can have another job and whether they need to have the employer’s permission first.
A Texas federal court recently entered an injunction against a healthcare staffing company that works with federal agencies ordering it to (1) return information brought to it by a new hire from his previous employer and (2) not to use such information in any way to submit bids on any staffing contracts with federal agencies.
Texas employees who refuse COVID-19 vaccine may be terminated. If they have a non-compete agreement with their employer, assuming the agreement meets the appropriate legal requirements, i.e., among other things, is reasonable, has geographic, scope, and term restrictions, and is supported by consideration, the fact that the employee was terminated or quit over the COVID-19 vaccine requirement, is not going to make the agreement invalid.
The the hallmark of enforcement of non-compete agreements in Texas is whether or not the covenants are reasonable. Generally, a reasonable area for in a covenant not to compete is considered to be the territory in which the employee worked. Furthermore, noncompete agreements barring an employee from working for a competitor in any capacity are invalid.