Texas Non Compete Severance Agreement

An employer can use severance pay in exchange for confidentiality. A confidentiality restriction can not only impair a worker`s ability to intervene in the affairs of their former employer, but also influence their ability to negotiate a claim against their former employer. There are exceptions to the industry exclusion rule, but again, why is this a coincidence? It is best to limit the non-compete clause to customers with whom the employee deals or learns confidential information while working for the company. First, you probably won`t find a state significantly more favorable than Texas for non-competitors. There are some things about Texas law that are favorable to the employee, such as the fact that you can`t get damages for violating an overly broad non-compete clause (see #6) and the prohibition of industry-wide exclusions (see point 9) But overall, Texas law is relatively friendly with non-competitors. The most common way to satisfy an employee`s “complementary” requirement is to link the non-compete clause to a confidentiality agreement. The Texas Supreme Court simplified this process in the Alex Sheshunoff case. The court said the employer can meet the “complementary” requirement by doing two things: agree to provide confidential information to the worker and then provide the promised confidential information. In the recent case of the Dallas Court of Appeals, an employee worked for a medical technology company that sold pacemakers, defibrillators and other similar devices.

At the time of its judgment, it signed a non-competition clause preventing it from selling competing products in its territory for a maximum period of one year after its resignation or termination for non-existent reasons. In February 2002, the employee resigned and went to see a competitor. She filed a complaint against her former employer to invalidate the non-competition clause. A Texas District Court granted the employer an injunction prohibiting the former employee from contacting twelve Dallas-area hospitals, and she appealed the decision. You can probably read this information about Texas` competition bans here because: 1) An employer gave you a non-compete clause and told you to sign it. Although the application of the non-competition clause in the agreement to separate the giants was not the subject of a request for a summary judgment, the final outcome of this case may indicate a similar non-competition clause based on severance pay. First, the agreement must include a “promise” to provide truly confidential information to the employee. Language such as “the company expects employees to have access to confidential information….¬†Perhaps insufficient. A court will likely find that there was no binding undertaking to provide anything to the worker. Here too, there are so many reflections.

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