In a recent post, I addressed the applicable framework under Texas law when employees not subject to non-compete agreements leave a job to compete with a former employer. This article addresses Texas law on non-compete covenants and its impact on potential disputes when covered employees exit and work in competitive roles.
Employers and employees alike have legitimate interests in these circumstances. Employers have an interest in protecting their investment in competitive information and knowledge held by the employee. On the flipside, exiting employees have a legitimate interest in earning a livelihood—and sometimes their only viable alternative might require a competitive role.
Recent Regulatory Scrutiny of Non-Compete Agreements
Because non-compete agreements can be used abusively to negatively impact employees and burden the free market, legislators and regulators have widely acted to restrain freedom of contract in connection with their use. Prospective federal regulatory changes may drastically alter the current legal framework nationwide.[i] But for the time being, Texas employers and employees would do well to familiarize themselves with the framework described below.
How Can Non-Compete Agreements Restrain Competition from Employees?
The “teeth” that compel compliance with covenants not to compete are (1) damage awards and (2) injunctive relief. Additionally, requests for injunctive relief to enforce non-compete covenants benefit from a special rule: the...
Director of School Education Thammem Ansariya has warned that criminal cases would be filed against those spreading false propaganda about the Mega DSC-2025 teacher recruitment process. In a statem...