Non-Compete Agreements Attorney in Houston, Texas

What trends do you see in the area of noncompetition agreements?

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The trends I see in non-competition agreement is the judges are reluctant to keep somebody completely out of an industry with one main exception. And you see this, unfortunately, so many times. If somebody is making plans to leave a company and they start forwarding e-mails to themselves through their private like a Gmail account or burning bagful’s of flash drives, well that’s not going to sit will with any judge and it wouldn’t look good to me as a lawyer. And I’d have to tell them that that’s something you really didn’t want to do and could be in huge trouble for doing so, that’s a no-no. Judges also don’t like to see deleting.

You couldn’t imagine how many people come to see me and their iPhone get lost because they have downloaded so much stuff on it. Those kinds of things judges just don’t like. But you very rarely will see a situation where somebody is prohibited from working in an industry. You’re much less likely to see a non-compete enforced if the employer terminates the employee. We’ve been seeing in the recent year a lot of Covid related layoffs. It’s very difficult to get those enforced, although employers do try and we’ve been very successful preventing it when somebody loses a job for a reason that’s not because of anything they did.

Houston, TX employment law attorney Gregg M. Rosenberg discusses the trends he sees in the area of noncompetition agreements. He observes that the current trend in non-competition agreements is that judges are generally reluctant to prevent someone from working in their industry, with one major exception. That exception arises when an employee engages in misconduct while preparing to leave a company—for instance, forwarding company emails to a personal account or copying files onto flash drives. He emphasizes that such actions are serious missteps and can put the employee in significant legal trouble; he makes it clear to clients that these are behaviors to avoid. Judges also frown upon the deletion of company data, or situations where, for example, employees’ devices become unusable because of improper data handling.

He notes that, outside of such misconduct, it is very rare for a non-compete to completely bar someone from an industry. Enforcement is also far less likely when the employee has been terminated. He points out that, especially in recent years with many COVID-related layoffs, courts have been very hesitant to enforce non-competes against individuals who lose their jobs through no fault of their own. In these situations, he has been highly successful in helping clients avoid being bound by overly restrictive agreements.

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