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 … [Read more...] about Employers: No Noncompete? Buy “Loyalty” Instead
Texas Supreme Court
Forfeiture Clauses: When Are These “Bad Boys” Enforceable?
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 … [Read more...] about Forfeiture Clauses: When Are These “Bad Boys” Enforceable?
Arbitration Clause in English Signed by Spanish-Speaking Employee: Enforceable?
Here’s a recent arbitration case that will interest employers with Spanish-speaking employees. In Delfingen US-Texas L.P. v Valenzuela, the employee sued the employer for workers’ compensation retaliation. Because the employee had signed an arbitration agreement, the employer filed a motion to … [Read more...] about Arbitration Clause in English Signed by Spanish-Speaking Employee: Enforceable?
Texas Whistleblower Update: Court of Appeals Ruling Invites Supreme Court Review
Texas has a statute that protects public whistleblowers who make a good faith report of a violation of law by a public agency or employee to the appropriate law enforcement agency. According to the statute, “appropriate law enforcement agency” is a governmental agency that the employee in good faith … [Read more...] about Texas Whistleblower Update: Court of Appeals Ruling Invites Supreme Court Review
Texas Supreme Court: Lilly Ledbetter Fair Pay Act Does Not Apply to State Law
This week, the Texas Supreme Court decided that the Lilly Ledbetter Fair Pay Act does not apply to the Texas Commission on Human Rights Act (TCHRA), the state law mirroring Title VII. (Click here for my previous blog covering the oral argument of this case.) The Lilly Ledbetter Fair Pay Act amended … [Read more...] about Texas Supreme Court: Lilly Ledbetter Fair Pay Act Does Not Apply to State Law
Fifth Circuit Certifies Two Questions to Texas Supreme Court Regarding Employment At-Will
This recent case brings to mind the old adage, “Never make promises you can’t keep.” Here are the alleged facts: DuPont spun off part of its operations to form a new subsidiary. DuPont gave affected employees an option—keep working for DuPont or go work for the new subsidiary. DuPont allegedly … [Read more...] about Fifth Circuit Certifies Two Questions to Texas Supreme Court Regarding Employment At-Will
Texas Supreme Court Creates New Defense for Employers
This week, my toddler invented a new word: “fleever.” A "fleever" is a make-believe power tool used to clean floors. Any household item may be used as a fleever--a flashlight, a hiking pole, an empty roll of paper towels. At its essence, fleevering involves making sweeping motions across the … [Read more...] about Texas Supreme Court Creates New Defense for Employers
Texas Supreme Court Hears Oral Argument in Age Discrimination Case
Under Texas law, does an employee who is over 40 and who is discharged and replaced with an older employee have the right to sue for age discrimination? That is one of the questions the Texas Supreme Court will decide in Mission Consolidated Independent School District v. Garcia. The Court heard … [Read more...] about Texas Supreme Court Hears Oral Argument in Age Discrimination Case
Does Ledbetter Act Apply in Texas?
The Texas Supreme Court heard arguments this week in Prairie View A&M University v. Chatha. The issue in the case is whether the Lilly Ledbetter Fair Pay Act (Ledbetter Act) applies to the Texas Commission on Human Rights Act (TCHRA), the state law that mirrors Title VII. The Ledbetter Act … [Read more...] about Does Ledbetter Act Apply in Texas?
Marsh: Good for Texas Employers?
In Marsh USA Inc., et al. v. Cook, --- S.W.3d ---, 2011 WL 2517019 (Tex. June 24, 2011) (not yet released for publication), the Texas Supreme Court held that providing stock options to an employee is sufficient consideration to support a noncompete. According to the majority opinion, because the … [Read more...] about Marsh: Good for Texas Employers?