Information on Non-Compete Litigation in Texas

Trade secrets are a crucial part of how operations are conducted within a business. This will include aspects such as marketing strategies, product lines in the pipeline and even databases containing customer information. This type of information could end up costing a firm a lot of money if these secrets landed up in the competitor’s hands.

Due to these types of risks, a number of employers insist on making their employees sign a contract relating to non-compete litigation in Texas agreement. This contract is more commonly known as a type of covenant which will include a no compete attachment. The laws in Texas state that these types of agreements must be adhered to by both employer and employee. An understanding of the agreement and the conditions contained is important for both parties.

The clause within a non-compete litigation in Texas agreement will put a constraint on the signer from either starting their own type of competing company or working for another competitor in the same line of business. This constraint will usually include a geographical limit as well as time frames. These circumstances will vary in court, clauses that are beyond protecting the firms interests will usually be over turned when it reaches court.

Three types of clauses will usually be examined when bought before a court of law and will include the following:

-Geographical restrictions

-Necessity relating to the clause

-Time limits

The employer will need to provide an employee with compensation when restrictions are placed on future opportunities. This type of compensation may include stock options, an increase in pay, or an option of employment for other positions within the company.

In the year 2001 a Supreme Court in Texas ruled that compensation such as stock options was considered as sufficient for non-compete litigation in Texas agreements. This type of ruling caused a number of states to upgrade their existing policies regarding agreements for non-compete.

Exceptions to this agreement will deal with physicians, according to the Commerce Code (Sec 15.50b), physicians are not allowed to be restricted from providing treatment and care to patients. During a type of acute illness even when the employment or contract has come to an end or termination of the contract.

When an individual is required to sign an agreement relating to non-compete type clauses or employers who would like to implement this clause into an agreement. It is always advisable to utilize a type of business lawyer, to ensure the agreement remains reasonable for both parties involved. When an employee feels that the restrictions are unreasonable or unlawful, there will be various legal options available that may result in the agreement being overturned.

Business lawyers can assist employers and employees by implementing attention to the finest details in the agreements. The lawyer can additionally provide personal attention to both parties involved on signing the agreement. A Dallas non compete litigator works towards an outcome that is amenable to both parties. This will ensure a happier outcome for the two parties signing such an agreement with a clearer understanding of the involved constraints.


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