I like Jimmy John’s sandwiches. Fast service and a decent sandwich. Unfortunately it pains me to reflect on the non-compete that they are apparently using with their workers. Yes, the gentleman or lady behind the counter is now subject to the following: Employee covenants and agrees that, during his or her employment with the Employer… Continue Reading
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A new tool for the Texas employer? The Exxon Incentive Plan
Posted in HR Issues, Non-Compete Agreements, UncategorizedFrom the employer’s perspective it’s always nice to have something new to use to prevent an employee from competing or using proprietary/confidential information once the employment relationship ends. Of course we talk all the time here about the standard post-employment covenants like the non-compete and non-solicitation provision. One item we haven’t addressed previously is… Continue Reading
Shawk & Awe In Non-Compete Enforcement?
Posted in Non-Compete AgreementsRemember when the US employed “shawk and awe” to start the war against Iraq? Do the same type tactics work in non-compete cases? One issue that typically arises in non-compete enforcement actions is who to sue. Of course the lawsuit will name the former employee who is violating their post-employment covenant but what about… Continue Reading
Amazon on the Prowl
Posted in Injunction, Non-Compete Agreements, Non-Solicitation AgreementsIn Seattle, former Amazon Web Services Strategic Partnership Manager Zoltan Szabadi was sued by Amazon for violation of his non-compete agreement. Szabadi is now with Google in their cloud platform business. The lawsuit alleges: Szabadi was directly and integrally involved with the marketing of Amazon’s cloud computing business to its partners and resellers, and played… Continue Reading
Making Non-Compete Agreements Stick
Posted in Non-Compete Agreements, Non-Solicitation AgreementsI recently wrote an article for the Texas Lawyer that can be downloaded here. The focus of the article is post-employment covenant enforcement based on some of the things I’ve learned over the years. While the article is certainly from the employer perspective, the lessons learned also has application from the employee perspective.… Continue Reading
Non-Competes on the Rise?
Posted in Non-Compete AgreementsA recent article in the New York Times highlights the use of non-competes in a wide variety of occupations including a summer camp counselor and a hair stylist. The article seems to casts non-competes as used in too many situations and that there is a rise in non-compete enforcement. I’m not sure I agree with… Continue Reading
Is Texas Non-Compete Legislation on the horizon?
Posted in Non-Compete AgreementsIf you follow the ups and downs of non-competes across the country you’ll note that there is a populist fervor in favor of banning non-competes in some states including Massachusetts. The argument generally goes that non-competes stifle innovation and of course prohibit an employees’ ability to move elsewhere (which is true). California has essentially… Continue Reading
Defining Victory in Non-Compete Cases
Posted in Non-Compete AgreementsThe reality of the litigation world is the vast majority of cases are settled. That means there is no trial, there is no summary judgment, and there is no ultimate decision by the court that resolves the case. I had a professor in law school that… Continue Reading
Texas Non-Competes in 2014
Posted in Non-Compete AgreementsNot Much in 2013 I kind of feel like a broken record when it comes to Texas non-compete development over the last few years. Since the Marsh opinion I have been anticipating more significant developments in the non-compete and post-employment covenant world as employers attempt to use different types of consideration as… Continue Reading
The Latest on Texas Non-Competes
Posted in Non-Compete AgreementsIt’s been over 2 years since the Marsh non-compete opinion was delivered by the Texas Supreme Court clarifying what the phrase “ancillary to an otherwise enforceable agreement” actually means. The real take away from that opinion, which we have discussed extensively, is that the consideration or value provided to the employee as part of the… Continue Reading
Coercion? Intimidation? to Force Non-Compete Compliance
Posted in Non-Compete AgreementsAssume for a moment that your company has a solid non-compete or non-solicitation agreement in place that is reasonable and there is an ex-employee out there violating the agreement. At this point your lawyers have prepared… Continue Reading
Anti-Planning Provisions – A New Non-Compete Weapon?
Posted in Arbitration, Non-Compete AgreementsRecently, an interesting case came out of the Dallas Court of Appeals that addressed a number of the topics dealt with here, including arbitration, choice of law, and equitable extension of a non-compete agreement. A copy of the opinion can be found here. In short, the defendants sold their insurance underwriting company to the plaintiff.… Continue Reading
Why Abuse of Discretion Matters to Employers (Non-Compete)
Posted in Non-Compete AgreementsTalking about the standard an appellate court uses to review a temporary injunction in a non-compete case isn’t very exciting and we can get lost in the legalese. But it is critical to have some appreciation of what wide discretion a… Continue Reading
Why Courts Like Non-Solicits over Non-Competes
Posted in Non-Compete AgreementsOne of my favorite new things to listen to is the Fairly Competing podcast put on by Ken Vanko, Russell Beck, and John Marsh. The podcast addresses a number of issues related to non-competes and trade secrets and recently discussed a court’s preference to enforce a non-solicit over a non-compete. The basic premise is… Continue Reading
Does your lawyer have to disclose your non-compete?
Posted in Non-Compete AgreementsThere is an interesting case that recently came out of the Dallas Court of Appeals regarding an attorney’s obligation to disclose the existence of a non-compete when he was preparing an independent contract agreement. If… Continue Reading
The Non-Compete Is An Employment Prenup
Posted in Non-Compete AgreementsI really liked Steve Boese’s article on non-competes in the fistful of talent recruiting blog. Steve considers the non-compete as HR’s equivalent to a prenuptial agreement. Steve also hit on what is most effective about a non-compete whether it is enforceable or not: Just the threat of potential legal action and the leverage a… Continue Reading
The non-compete agreement that didn’t happen.
Posted in Non-Compete AgreementsRecently, the Swiss drug maker Novartis announced a $70,000,000 severance package, which included a non-compete, for its departing CEO Daniel Vasella. In exchange for the package Vasella was going to sit on the… Continue Reading
Can the Public Interest Trump a Non-Compete? Yes.
Posted in Non-Compete AgreementsDoctors Public Interest Exception Non-Compete… Continue Reading
Non-Competes – Can I get my attorneys’ fees?
Posted in Non-Compete AgreementsA few weeks ago, we discussed realities of recovery of attorney’s fees in litigation. This post attempts to narrow that focus on post employment covenants. Under Texas Law, a party can recover its reasonable and necessary attorney’s fees for a breach of contract under Texas Civil Practice and Remedies section 38.001. A non-compete agreement… Continue Reading
The Year That Was in Texas Non-competes
Posted in Non-Compete AgreementsAt the end of each year I try to address and take inventory of what has occurred in post-employment covenant litigation in the State of Texas. After several years of dramatic Texas Supreme Court opinions on the subject of non-competes, 2012 was a quiet year. We heard nothing from the Texas Supreme Court on… Continue Reading
Should Employers Arbitrate Non-Compete Claims?
Posted in Arbitration, Non-Compete AgreementsEmployers generally like to include arbitration agreements in their employment agreements because it keeps them out of court and away from juries. There are pluses and minuses when it comes to arbitration that we have discussed previously. Some arbitration agreements also apply to enforcement of non-compete, non-solicit, and other post-employment covenants. The United States… Continue Reading
The Non-Compete Weekly Issue 1
Posted in Non-Compete AgreementsPaperli.PaperFrame.Show({ id: ‘884596b6-5bc9-49be-b00f-98e5b82b0ac7’, width: 390, height: 480, background: ‘#ECECEC’, borderColor: ‘#DDDDDD’ })… Continue Reading
The State of Texas Non-Competes
Posted in Non-Compete AgreementsI have been off in the world of expedited discovery and temporary injunctions for the last two months. Below is my take on the state of Texas non-competes that appeared in the Langely Weinstein LLP Employment Law Update for July. … Continue Reading
One Year After Marsh and No Non-Compete Answers
Posted in Non-Compete AgreementsWe are coming up upon the one year anniversary of the Marsh v. Cook decision where the Texas Supreme Court altered the non-compete playing field in favor of Texas employers, again. In Marsh, the Court held that stock options could serve as the basis for a non-compete agreement and that the traditional trade secretes/training/proprietary information giving… Continue Reading
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