1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

A Primer on Preparing for Non-Compete Litigation: Part 1 in a Series

OK, so let’s say you have just learned that a  former key employee of yours may be violating the terms of her non-compete agreement with your company.  What should you do? Should you call her and ask that she stop? Should you ask your attorney to send her a letter threatening her with prompt legal action? Or should you immediately file for a temporary restraining order or injunction with notice–a “sneak attack,” as it were?  While you may ultimately execute all of these actions, your initial step should be gathering the evidence that will support your claim of violation, and you should move as quickly as possible to accomplish this.

Therefore, before you alert the employee that you are aware of her activities and spend several thousands of dollars in attorney’s fees pursuing a temporary injunction—we suggest an ordered approach to help you evaluate the strength of your claim against the ex-employee.  This step-by-step method will also help you gather the ammunition that you will need if you proceed.

First Step: Identify and Gather Relevant Evidence

You need to learn as much as you can about the employee in question and any agreements she might have signed with the company that might contain a post-employment restriction on her activities. Look for the following documents in the employee’s file:

(1) offer letters;

(2) employment applications;

(3) employment contracts;

(4) non-competition agreements;

(5) stock option agreements;

(6) non-solicitation agreements;

(7) separation/severance documents that the employee might have executed as part of such agreements;

(8) settlement agreements containing any releases of claims;

(9) if there was a merger and acquisition,  documents that she may have executed as part of that transaction;

(10) any other agreements she signed that contain any post-employment restrictions.

As you peruse your records for the above items, bear in mind that older Texas non-compete agreements can take the form of a “stand-alone” document. More often, the non-compete will be an integral part of one of the above documents.

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297