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.
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
A non-compete agreement or a non-compete clause prohibits employees from working for their employers’ competitors within a certain geographic area, for a certain period of
In several states, enforcement of void non-compete agreements is a misdemeanor, punishable by fines and administrative penalties.
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.