09/03/2013 // Dallas, Texas, United States // Attorney Keith Clouse (Blog) // Keith Clouse

The Wall Street Journal recently reported that litigation over noncompete agreements is rising at an astronomical rate. Over the past decade, the number of departing employees who have been sued by their former employers for breaching noncompete agreements rose sixty percent.

Many people fear that litigation over noncompete agreements stifles innovation and job creation. They also worry that these lawsuits have a negative effect on entrepreneurship for two reasons: First, individuals cannot leave their corporate employers to launch their own businesses. Second, startup businesses cannot hire qualified individuals because those individuals are restrained by noncompete agreements.

Noncompete agreements are most often signed when an employee first joins an employer. Employers typically entered into these agreements only with top executives. Now, however, employers are asking more employees--such as sales representatives, engineers, and people involved in research and innovation--to enter into these agreements.

Noncompete agreements are governed by state laws, and every state’s law is different. In some states, it’s relatively easy to enforce a noncompete agreement. Other states make it much more difficult for employers to control an individual’s post-employment activities.

To learn more about Texas noncompete matters, contact an employment lawyer in your area. This article is presented by the employment law attorneys at Clouse Dunn LLP. For inquiries, send an email to debra@clousedunn.com or call (214) 239-2705.

Contact Keith Clouse

KEITH A. CLOUSE

Clouse Dunn LLP

214.220.2722 214.220.3833 ( fax) keith@clousedunn.com