In the past several years the business-friendly state of Texas has experienced enormous growth with companies from all over the U.S. deciding to relocate to the “Lone Star State.” Understandably, these companies are concerned with, among other things, being aware of some of the employment issues in Texas. Several of those companies have contacted us to address those issues. Below are some of our more significant responses:
-The Texas Labor Code contains many of the statutes governing the employment relationship. One portion of the Code prohibits discrimination in employment; another governs payment of wages; and another prohibits retaliation against an employee who files a good faith workers’ compensation claim.
-For the most part there are no certain rules regarding the difference between an employee and a contractor.
-Employment contracts do not have to be in writing. Texas has a strong policy in favor of employment-at-will. This means that, without a written contract, either party in an employment relationship may terminate the relationship for any reason or no reason at all, and with or without advance notice. Thus, Texas employers may develop and change personnel policies, reassign employees, and change such things as work locations, schedules, job titles, job descriptions, pay, and other aspects of jobs at will.
-Arbitration agreements are important and enforceable. We counsel companies on the precise wording they need to comply with arbitration…if they want to.
-Restrictive covenants/covenants not to compete. Our firm has litigated numerous cases on this covenant. The express wording is critical as a Texas statute and case laws govern if this covenant is enforceable to protect the company/employer or not.
Although Texas is a business-friendly state, we suggest companies take timely action to comply with Texas law to hopefully stay out of court.
Please contact us if you have any questions. We are here to help.
Mark A. Alexander
5080 Spectrum Suite 850
Addison, Texas 75001