Skip to content

Employers don’t spend enough time considering their non-competes.  That’s an overly broad statement, but it is usually the rule not the exception.  The reason that happens kind of makes sense. Most employers haven’t been down the road of enforcing a non-compete.  The provision at issue may be a one-off that’s included in one employment agreement

At the outset of most employment relationships, the employer will have an employee sign a litany of documents ranging from a IRS form W4 to a non-compete agreement.  Buried within those documents is usually some form of a confidentiality agreement.  Within the agreement the employee agrees not to share any of the employer’s confidential information while an employee and after they depart.  Sometimes the agreement is referred to as a non-disclosure agreement or NDA.  Here is an example of a clause from such an agreement:

Continue Reading

The usual gamut of post-employment covenants includes non-compete restrictions, non-solicitation of customer restrictions, confidentiality restrictions, and in many cases the anti-raid provision designed to keep a departing employee from hiring away a former employer’s employees and contractors.  The anti-raid is not always given a lot of thought, but it should be.  Why?  Because when

One option we’ve never spent much time discussing here as it relates to non-competes is the buyout option – on both sides.  Buying out a non-compete is neither new nor novel.  Physician non-competes in Texas require that the non-compete provision include a buyout option.   The statute provides:

the covenant must provide for a buy

people-220284_960_720

A Texas non-compete must satisfy two main components to be enforceable. The non-compete has to be ancillary to an otherwise enforceable agreement and be reasonable in time and scope. Before the Texas Supreme Court this week was a case where the court was asked to consider a non-compete without a geographical restriction and consider whether

Cover

Nobody likes non-competes except business owners/leaders trying to use them to protect their business.  It is the proverbial political softball that some legislatures attempt to address every session.  In May the Obama Administration took on non-competes and released a report entitled  “Non-Compete Agreement: Analysis of the Usage, Potential Issues, and State Responses”.  The report