NON-COMPETITION AGREEMENTS AND TRADE SECRETS

What is a Non-Compete Agreement? 

A non-compete agreement is a contract between an employee and an employer in which the employee agrees not to enter into competition with the employer during or after employment for a specific period of time. Non-competes are useful to employers in cases where an employee has important confidential information or trade secrets. Non-compete agreements should be used for employees that have or will receive access to confidential information, trade secrets, client lists, or marketing strategies. A proper non-competition agreement is the first step in protecting your confidential and proprietary business information. Our business and IP litigation lawyers draft and litigate non-compete agreements in both federal and state courts.

Drafting a Non-Complete Agreement for Enforcement? 

When drafting a non-compete agreement, you must first consider the state's law in which the employer-employee relationship is formed. State law governs the interpretation and enforceability, of non-compete agreements. Generally, in a non-compete agreement, the employer agrees to provide specialized training or divulge confidential and proprietary information to the employee and, in return for the receipt of specialized training or confidential information, the employee promises not to work for a competitor for a reasonable period of time and often within a defined geographic location.  Further, n on-compete agreements must be supported by adequate consideration. Adequate consideration would include the employer providing the employee something of value that the employee is not otherwise entitled to receive in return for the employee's promise not to compete with the employer.  So, in summary, to be enforceable a non-compete agreement must satisfy the following requirements:

• Basic contract law, including adequate consideration; and

• State law specific to the employer-employee relationship.

Non-Compete Agreements and At Will Employment 

At-will employment is employment that the employer or employee can lawfully terminate at any time. In some state jurisdictions, the offer of at-will employment alone is adequate consideration for a non-compete if and only if the non-compete agreement was entered into at the beginning of the employment relationship. If the employer-employee relationship has already commenced, some additional consideration will be required to ensure the enforceability of the non-compete agreement.

In Texas,  an offer of at-will employment is not enough. A Texas non-compete agreement must protect an employer's legitimate business interest. The consideration furnished by the employer to the employee for the non-compete must be connected to those interests. Adequate consideration in Texas would include a promise to provide an employee with highly specialized training or confidential formation designed to further the specific business interests protected by the non-compete. The geographic scope of the non-compete agreement is determined by the employee's activities, not those of the employer.  Our business litigation attorneys have earned a reputation for being aggressive, responsive, efficient and, most importantly, successful. 

Dallas Non-Compete Litigation Lawyers



Our Dallas litigation attorneys have earned a reputation for aggressive, responsive, efficient, and most importantly, successful litigation. While we are prepared to take every case to trial, we know from our clients' perspective that often, the best litigation is the one that settles in mediation. Our straight forward unbiased guidance can help you avoid litigation whenever possible. However, if needed, our litigators are skilled in negotiation techniques and have a reputation for achieving very favorable results for our clients both in-court and out-of-court.