This is where I see most of the errors in Texas non-contest. It seems that many lawyers who enter into non-competition agreements are not aware that Texas law generally prohibits “industry-wide exclusion.” I explained this in Burning Down the Haass: The Industry-Wide Exclusion Rule in Texas Non-Compete Law. (Again with the songs of the 80s.) You can make this harsh reality in the recent case amend v. J.C. Penney Corp., No. 05-19-00723-CV, 2020 WL 1528497 (Tex). App.-Dallas Mar. 31, 2020, no pet. h.) I see.
(mem. op.) In this case, J.C eliminated Penney Amend`s position and completed it. He later found a job at Lowe`s as president of Online. I .C. Penney sued Amend for violating its competition prohibitions, the court judge refused to dismiss the appeal and the Court of Appeal upheld the court`s decision. The fact that J.C Penney amended was dismissed did not prevent him from complaining about imposing his non-competition. On the other hand, you don`t want your non-competition to be subject to Shenanigans like this. The courts will refuse to enforce the claimed purpose of the non-competition ban if the plain language indicates that the prohibition on non-competition is not applicable. See z.B., Total Safety U.S., Inc. v.
Code Red Safety – Rental, LLC, No. 4:19-CV-03836, 2020 WL 57775826, at 4 (S.D. Tex). Sept. 4, 2020) (rejection of the employer`s argument that the employment did not end when the employee was promoted and went to work for a subsidiary). It is best to link, if possible, non-competition prohibitions to transport that gives the worker access to a wider range of confidential information than before. That`s why my post-promotion non-competition form says, “We will also give you new types of confidential information that you didn`t have access to in your previous position.” In Texas, non-competition obligations are enforceable if the agreement complies with legal requirements. In Texas, the law is very specific: non-competition prohibitions are generally enforced by the courts when they are time-and-place-appropriate and do not unduly restrict the former employee`s right to a job. It goes without saying that the different parties have different conceptions of what constitutes a “reasonable” restriction. Legal experts argue that the courts are much more inclined to take the contractor`s side when he does not go to sea, when he imposes restrictions in the following areas: the consideration given by the employer must be something “designed to enforce the obligations of non-competition”. Consider this, because the employer must give the worker something that the employer would not give if the worker did not sign a non-compete clause. An employer would be reluctant to give an employee the secret sauce if the employer felt that an employee could then use the secret sauce to compete with the employer.
Another example of thinking about the application of the non-competition clause would be an employer who would rehabilitate a worker to a specific qualification or other. First of all, you probably won`t find a state that is much more favorable to non-competitors than Texas. There are certain things about Texas law that are employee-friendly, such as the fact that you can`t get damages for violating excessive non-competition (see No. 6) and banning sectoral exclusions (see No. 9) But overall, texas law is relatively friendly for non-competitions. Of course, that doesn`t seem right. For most people, it seems wrong for a company to be able to fire an employee for no reason, and then prevent the employee from working for a competitor. This is probably why there is a widespread misunderstanding that the employer can only impose non-competition prohibitions if the employee ceases or if the employee has been dismissed for a good reason. Thus, the employer may have difficulty convincing the trial judge, the clients will return and he may be stuck with the intermediate result of Gallagher v.
Richardson. For this reason, it could be said that the lesson of the Gallagher case is that the employer should immediately take legal action if the employee is going to join a competitor.