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When the Employer and the Employee Reside in Different States, Which State’s Law Applies to a Non-Compete Agreement?

By Covenants Not to Compete, Litigation, Noncompete Agreements
Welcome to Texas Business Matters! This is our sixth blog in a ten-part series on non-competes. In our last blog, we addressed the special rules for non-compete agreements for physicians.  In this blog, we will discuss which state’s law applies to a non-compete agreement when the employer and the employee…
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What Are an Employer’s Remedies When an Employee Breaches a Non-Compete Agreement?

By Business Law, Civil Litigation, Covenants Not to Compete, Damages, Employment Policies, Litigation, Noncompete Agreements
Welcome to Texas Business Matters! This is our third blog in a ten-part series on non-competes. In our last blog, we addressed the difference between non-compete, non-solicitation, and non-disclosure agreements and how to determine if your business needs a non-compete. In this blog, we will discuss the remedies that an…
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Employer Disaster Plan: What To Do When an Employee Has Stolen Trade Secrets and There Is No Non-Compete Agreement

By Appeals, Business Law, Civil Litigation, Covenants Not to Compete, Hiring and Firing, Litigation, Noncompete Agreements, Recent Cases, Tips & News, Trade Secrets
Trade secrets are the kind of information that, if end up in the hands of a competitor, could spell disaster for your business. A common example is the Coca Cola recipe. Other examples include customer lists, pricing information, and business strategies. Under Texas law, it is illegal for an employee…
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Employers: No Noncompete? Buy “Loyalty” Instead

By Appeals, Business Law, Civil Litigation, Covenants Not to Compete, Litigation, Noncompete Agreements, Recent Cases, Texas Supreme Court, Tips & News
In April, I wrote about the enforceability of forfeiture clauses in an article published in Texas Lawyer and reprinted with permission here. A forfeiture clause requires an employee to forfeit his right to compensation if he engages in activity detrimental to the company, such as working for a competitor. In…
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Forfeiture Clauses: When Are These “Bad Boys” Enforceable?

By Appeals, Business Law, Civil Litigation, Covenants Not to Compete, Litigation, Noncompete Agreements, Recent Cases, Severance Agreements, Texas Supreme Court
Executive employment contracts and severance agreements often include a forfeiture clause. These so-called "bad boy" clauses require the employee to forfeit his right to compensation if he engages in activity deemed detrimental to the company, such as working for a competitor. A case pending before the Texas Supreme Court could…
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