Smooth Transitions

Smooth Transitions

Addressing the Legal issues arising from the departure of employees & Business breakups

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A new tool for the Texas employer? The Exxon Incentive Plan

Posted in HR Issues, Non-Compete Agreements, Uncategorized

  From 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 Agreements

  Remember 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 Agreements

In 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

Non-Competes on the Rise?

Posted in Non-Compete Agreements

A 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 Agreements

  If 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

Texas Non-Competes in 2014

Posted in Non-Compete Agreements

                              Not 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 Agreements

                     It’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

The Non-Compete Is An Employment Prenup

Posted in Non-Compete Agreements

                     I 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

Non-Competes – Can I get my attorneys’ fees?

Posted in Non-Compete Agreements

  A 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 Agreements

                          At 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 Agreements

                     Employers 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

One Year After Marsh and No Non-Compete Answers

Posted in Non-Compete Agreements

                          We 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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