Dallas Employment Lawyer - Keith Clouse

Keith Clouse
This website and all materials on it have been prepared by Clouse Dunn LLP for informational purposes only. These materials do not, and are not intended to, constitute legal advice.

214.220.3888

Dallas

The White House Speaks On Non-Compete Agreements

“Non-competes are often given to workers that do not possess trade secrets”

July 19, 2016


(press release: cdklawyers) // Dallas, Texas // Keith Clouse

On May 5, 2016, the White House issued a report on non-compete agreements.  Employers provide non-competes to protect their trade secrets and confidential information.  However, the US Treasury Department found that non-competes are often given to workers that do not possess trade secrets.  When used appropriately, non-competes can play an important role in protecting a business, but in some cases, they impose substantial costs to workers and hinder the economy.

The White House has presented seven (7) potential issues with non-competes:

         1.    Workers who are unlikely to possess trade secrets are nonetheless compelled to sign non-competes;

         2.    Workers are asked to sign non-competes only after accepting a job offer, when they have already declined other offers and thus have less leverage to bargain;

         3.    Non-competes, their implications, and their enforceability are often unclear to workers;

         4.    Employers often write non-compete agreements that are overly broad or unenforceable;

         5.    Employers requiring non-competes often do not provide “consideration” that is above and beyond continued employment;

         6.    In some cases, non-competes can prevent workers from finding new employment even after being fired without cause; and

         7.    In some sectors, non-competes can have a detrimental effect on health and well-being by restricting consumer choice.

These issues can and should be avoided.  Texas employers should take steps to address these potential issues, which may increase an employer’s ability to enforce a non-compete agreement.

To speak to an employment law attorney about non-compete agreements, send an email to debra@clousedunn.com or call (214) 239-2705. This article is presented by the Dallas employment law lawyers at Clouse Dunn LLP.