Texas Supreme Court upholds noncompete agreement — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Texas Supreme Court upholds noncompete agreement

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in Employment Law,Human Resources

Texas courts ordinarily reject noncompete agreements that require employees not to disclose confidential information if the employer has failed to provide the employee with that confidential information. But now the Texas Supreme Court has modified that stance.

Recent case:
Brendan Fielding signed on with an accounting firm to perform accounting work, and agreed not to use confidential information if he left the firm. When he left, he tried to use client information, and his former employer sued. The Texas Supreme Court ruled that the agreement, even without the employer’s promise to provide confidential information, was valid.

The court reasoned that an accountant always receives confidential information from clients, and doesn’t need a promise from his employer. (Mann Frankfort Stein & Lipp v. Fielding, No. 07-0490, Supreme Court of Texas, 2009)

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