Covenants Not to Compete
Texas Employment Contract Lawyer
Covenants Not to Compete and Trade Secret Agreements
Contact Austin Business Law Attorney John McDuff
As a veteran Central Texas business lawyer and CPA, I have helped many businesses through stages and processes including the following:
- Business start-up
- Entity selection
- Asset Purchases
- Venture capital investments
- Shareholder agreements
Each business has unique needs for legal protections. I counsel businesses on legal and tax consequences of their choices. Many businesses ask for my advice and assistance to craft and implement restrictive provisions in agreements with employees, such as covenants not to compete.
I welcome the opportunity to discuss your business’s goals and needs, including covenants not to compete, covenants not to solicit employees, trade secret disclosure restrictions, and other matters to be implemented with employees, through employment contracts and other agreements. contact me, John McDuff, to schedule an appointment.
The quality of my work is well recognized by my clients, and I have received the AV rating* under Martindale-Hubbell’s peer review rating system.
Covenants Not to Compete
A covenant not to compete is just that, a promise by an employee that when he leaves your employ, he will not compete against you. There are many terms that must be considered for such an agreement. First, you must give the employee something, to receive a covenant in return. The area in which competition is not allowed, and the time period in which competition is not allowed, have to be set with the relevant statutes in mind. Covenants not to compete are usually agreed incident to an employment contract being signed, or the purchase and sale of a business. Of course, a binding covenant can be reached in other types of agreements. Needless to say, one must get a solid employment contract, as well as a solid covenant not to compete within it.
Covenants Not to Solicit
Frequently, a covenant not to compete will also be joined by a promise that after the employee leaves, for a period of time the person who has left will not solicit any of the company’s employees to change jobs.
Covenants Not to Disclose Trade Secrets
Also, trade secret provisions may be joined to the covenant not to compete. The basic provision is that the employee, in performing his job, may have access to matters that the company views as confidential, and the disclosure of which may cost the company profits. Typical examples of trade secrets are technological innovations, customer lists, pricing lists, and financial statements. The promise made by the employee is not to disclose the trade secrets to anyone, after leaving the employ of the company.
Discuss your business’s needs with me, on the implementation of protective instruments such as covenants not to compete, covenants not to solicit, and covenants not to disclose. As a veteran business law attorney, I am prepared to help you protect and grow your business. contact me, John McDuff, by phone at 512.457.1177 or e-mail me to schedule an appointment.
*AV, BV and CV are registered certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies.
Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the Judiciary. Martindale-Hubbell Ratings fall into two categories - legal ability and general ethical standards.
