Protecting Your Assets In Noncompete Agreement Disputes
Disputes over noncompete agreements are complex legal matters. Employers need to restrict where former employees move, especially when they consider working for a competitor or within a specific geographic area. Employees exploring options outside of their current employer are bound by the contract they signed.
Employers use noncompete agreements when they have trade secrets, intellectual property, or other confidential or proprietary information. At Palmer Lehman Sandberg, PLLC, our lawyers protect our clients and their valuable assets when former staff members violate noncompete agreements.
Protecting The Interests Of Our Business Clients Throughout Texas
In Texas, valid noncompete agreements drafted with knowledge of and adherence to the law are enforceable. More importantly, they are vital to protect the business interests of the employer. Violations raise the stakes, particularly for the employer.
In response to noncompete agreement disputes, we hold employees accountable for violating the terms of the document they signed. Violations require immediate responses and aggressive actions in court. Solutions can be found through mediation. However, litigation remains an option if all other means toward resolution are exhausted.
Frequently Asked Questions About Noncompete Agreement Disputes In Texas
Our attorneys can answer any questions you have about noncompete agreements. Here are some answers to frequently asked questions:
What should employers do if they believe a former employee is violating the terms of a noncompete agreement?
The first step is to gather all available evidence that supports your allegations and review the terms of the noncompete agreement with an attorney at Palmer Lehman Sandberg, PLLC, to determine its enforceability under Texas laws.
The second step will most likely be to send a formal cease and desist letter to the former employee (and/or their current employer) with specific information about how the noncompete is being violated. The letter should also demand an immediate end to those activities and a warning that further legal action will follow if they continue.
What evidence will help prove a former employee is breaching their noncompete agreement?
Evidence is essential to prove that a former employee violated a noncompete agreement and engaged in prohibited activities, such as exposing trade secrets, soliciting clients, using confidential information or working for a direct competitor. Some forms of evidence that can support a noncompete agreement dispute include:
- Emails
- Text messages
- Client lists
- Financial records
- Digital forensics
- Witness statements
Documentation can provide clear proof that a former employee is violating a noncompete agreement and also help determine damages, if necessary.
Can employers recover monetary damages for a noncompete violation?
Yes. If a noncompete agreement violation claim is successful, a Texas business can recover monetary damages for its lost profits, the value of revealed trade secrets and lost customers or reputational damage. This is in addition to the use of injunctions to stop the behavior from continuing.
Can overly broad noncompete terms be enforced?
The viability of noncompete agreements has changed over time, with the courts refusing to enforce overly broad conditions. This does not mean, however, that an overly broad agreement is worthless. The courts in Texas can reform (“blue pencil”) an agreement to narrow the scope of the terms and make the more limited terms enforceable.
Even if you suspect that the noncompete agreement a former employee signed would now be considered unreasonable, it is wise to seek an experienced attorney’s guidance. Employers often have more recourse than they realize.
Contact Us To Resolve A Dispute
For more information on noncompetition disputes, call an attorney at our Dallas law office at 214-242-6444. You can also use our intake form to contact us online.
We offer convenient office hours, flexible appointment times and reasonable fees. Visa, Mastercard and Discover are accepted.