What Are Business Employment Disputes?
Key employees often have access to customers, pricing, strategy and confidential data. When an executive or employee leaves to compete, solicits clients or coworkers, or disputes their pay or equity, the business can face serious financial harm. These disputes require fast action to protect relationships and information.
Common Employment Disputes for Texas Businesses
- Non-compete and non-solicitation enforcement
- Departing employees taking customers or confidential files
- Employee raiding by competitors or former executives
- Executive compensation, bonus and commission disputes
- Equity, profit interest and phantom stock disputes
- Breach of employment and severance agreements
- Employees competing while still employed
- Disputes with independent contractors and consultants
Are Non-Compete Agreements Enforceable in Texas?
Yes, when they meet Texas requirements. A non-compete must be ancillary to an otherwise enforceable agreement, such as a promise to provide confidential information or specialized training, and must be reasonable in time, geographic area and scope of activity. Courts can reform overly broad restrictions rather than void them entirely. Non-solicitation and confidentiality agreements follow similar principles.
Duties Employees Owe the Business
Officers and many key employees owe duties of loyalty while employed. Texas law generally allows employees to prepare to compete before leaving, but not to use company time, confidential information or resources to do so, or to solicit customers before departure.
How We Protect Texas Businesses
We move quickly to preserve evidence, send demand letters, and seek temporary restraining orders and injunctions when former employees threaten customer relationships or confidential information. We also defend companies against claims by former executives over compensation and equity.
Preventing Employment Disputes Before They Start
Many employment disputes can be avoided with strong agreements and practices. We recommend clear non-compete, non-solicitation and confidentiality terms supported by real consideration, documented access controls on sensitive data, exit interviews with reminders of continuing obligations, and prompt collection of company devices when key employees leave. Strong documentation also makes enforcement faster if a dispute arises.
Employment Dispute Attorneys in Dallas and Across Texas
AbsolutLAW represents businesses in Dallas, Fort Worth, Plano, Frisco, Houston, Austin and San Antonio. Schedule a free consultation or call 214-935-1628.
Business Employment Disputes: Frequently Asked Questions
How long can a Texas non-compete last?
There is no fixed limit. Courts look at reasonableness, and restrictions of one to two years are commonly upheld when tied to legitimate business interests.
Can I stop a former employee from soliciting my customers?
Often yes, if a valid non-solicitation agreement exists or the employee is using confidential information. Injunctions can stop ongoing solicitation.
What if an employee took company files before leaving?
Preserve devices and access logs immediately and contact counsel. Claims may include trade secret misappropriation, breach of contract and conversion.
Can an employee start a competing business while still employed?
They may prepare to compete, but generally cannot use company resources, confidential information or work time, or solicit customers before leaving.
Do you represent employees?
Our focus is representing businesses and owners in disputes with executives, employees and competitors.