by Scott A. Brutocao, Ogletree Deakins, Austin
Last October, the Texas Supreme Court ruled employers may require new and existing employees to sign covenants not to compete, even if they are “at will” employees. As long as the employees get something in return for agreeing to the restrictions their employers want, the agreements are legal.
The conventional thinking among the courts about noncompete covenants is shaped by the following logic:
- Covenants not to compete depend on the employers providing employees the kind of confidential information about clients, markets, business processes and so forth that an employee might need to be effective on the job—and that the employee could use after leaving the employer.
- Such confidential information benefits employees. The employer provides it as “the something in return” for the employee’s promise not to compete.
Before the Texas Supreme Court ruled, a contra...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Change company culture to stop sex bias suits
- Is it legal for employees to secretly record their performance evaluation meetings?
- Paying for travel time: Know the rules of the road
- Come down hard on supervisors: No telling employees to drop discrimination complaints