tag:blogger.com,1999:blog-783555414969319962.post8821708237300108389..comments2023-09-20T02:53:58.764-05:00Comments on Legal Developments In Non-Competition Agreements: Texas Non-Compete Cases Continue Down Bizarre Path (TransPerfect Translations v. Leslie)Kenneth J. Vankohttp://www.blogger.com/profile/10498204441488030967noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-783555414969319962.post-15927708669870402742010-01-03T09:35:40.107-06:002010-01-03T09:35:40.107-06:00Like all agreements, the enforceability will flow ...Like all agreements, the enforceability will flow from the specific language of the non-compete agreement. With that said, however, I offer the following:<br /><br />To your first question, the scenario you offered will not specifically shield the employee. The employee likely signed the non-compete personally and is therefore personally responsible for complying with it - regardless of whether the employee goes to work for his/her own company or a company owned by a third party. The employee is going to be personally liable for performance and has personal exposure to a lawsuit from the former employer.<br /><br />To your second question, the location of incorporation of his/her company is likely to be irrelevant - the relevant inquiry will be the actual location of the competition. In your scenario, the employee is going to work for his/her own company. Alter the scenario a little and say the employee is going to work for GE in the same geographic location in which the employee was previously employed. Even though GE is not likely incorporated in Texas, the competition is in Texas so the employee is likely to be restricted. The employee is less likely to be restricted if the employee was going to go to work for GE, or for the employee’s own company, out of state like in Nevada, but that is not the scenario you put forth.<br /><br />I hope that helps.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-783555414969319962.post-6009231722239634112009-11-27T23:18:48.096-06:002009-11-27T23:18:48.096-06:00That's a good question? I would like to know...That's a good question? I would like to know the answer to that if anyone knows.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-783555414969319962.post-65960624059351852682009-11-16T21:38:43.977-06:002009-11-16T21:38:43.977-06:00Interesting article. I understand why employers w...Interesting article. I understand why employers want non-competes, but on the back-end, when the employee leaves, he finds he is handcuffed and is something of an indentured servant. <br /><br />What about this scenario: employee signs a reasonable non-compete and employee is also incorporated in Nevada in a non-related enterprise. Employee leaves employer and starts a company of his own as a DBA, within the Nevada corporation, and competes for the same customers in the same local geography for the same business.<br /><br />Will the Inc shield the employee from any lawsuit? Does the non-compete allpy since the Inc is a Nevada corp and the competition is taking place in Texas?Jerry Davishttps://www.blogger.com/profile/07525733495135095355noreply@blogger.com