A. Yes. I don`t waste time, and since I`ve done over 1000 competition consultations, I know the questions I need to ask and I`m good at quickly analyzing a situation. However, the Texas legislature has developed an exception by leaving competition prohibitions enforceable in certain circumstances. Although Texas is a „right to work,“ the state has never had any influence on the applicability of non-compete rules. Employers and workers believe that the competition bans are even more enforceable than before. The Texas „right to work“ means that an employee cannot be prevented from working simply because he or she makes a specific decision regarding affiliation or non-affiliation with a work organization. The „right to work“ law ensures that the worker`s choice remains whether or not to join a trade union. In recent years, Texas courts have shown support for the employer`s use of non-compete rules. The courts have done so by finding certain third-party effectiveness requirements which, in certain circumstances, are implicit in non-competition rules. Despite this trend, the Federal Court of Appeals, which covers Texas, ruled in June 2015 that a duty of confidentiality of information was not.
Leiza negotiates on behalf of companies and employees against unfair competition, the non-competition clause and trade secrets and has advised hundreds of clients on non-competition and trade secret issues. If you need assistance with non-competition or misappropriation of trade secrets, contact Leiza for a confidential consultation at Leiza.Dolghih@lewisbrisbois.com or (214) 722-7108. For a non-competition clause to be applicable, the worker must receive adequate or sufficient consideration. In addition, this reflection must go beyond a promise to continue employing the employee or a cash bonus. Under Texas law, examples of proper consideration may be the following: each state easily has different non-compete laws, some states limit the robust recognition of these agreements to varying degrees, and other countries limit their enforcement. In California, for example, competition bans are not valid, while Texas recognizes their validity in certain circumstances. Myth #5: If a non-competition clause seems reasonable, there is no way to combat it. It`s not true. There are many objections to competition bans and the existence of a certain non-competition clause before the courts depends on the specific language of the agreement, the professional obligations of the worker, the duration of employment, access to confidential information and a large number of other factors. In short, competition bans can be enforceable in Texas. We are here to help you understand your non-compete clause.
Start by identifying the reflections that have been granted by your employer in fourth place to justify the restrictions set out in your non-competition clause. In his unanimous opinion in Marsh USA, Judge Willett warned judges to be „divine when competition becomes unfair competition and a restriction becomes an inappropriate or unnecessarily restrictive restriction.“ Texas law, he said, „does not allow protectionism,“ and that non-competitors cannot protect against „the bruises of ordinary competition.“ Texas is a state that has the right to work (which means no one can force you to join a union). Many people therefore believe that the competition bans are not applicable in this area. A non-competition clause is applicable where it is part of an agreement enforceable in another way, to the extent that it contains restrictions as to the time, place and extent of the activity to be restricted, which are appropriate and which do not impose a greater limitation than is necessary to protect the commercial interests of the promise. . . .