Contract disputes over noncompete agreements not unusual

It is common for employers to want to protect their businesses in various ways. For some, utilizing noncompete agreements is one way to work toward that protection. However, these agreements are not foolproof, and contract disputes could arise if an employee does not feel that the the terms are enforceable or if an employer feels that the terms have been broken.

Texas residents may be interested in this type of situation currently underway in another state. The issue involves two healthcare systems with the first system claiming that the second has been “poaching” employed doctors who are under contract. Those contracts reportedly include noncompete agreements that are in affect for one year after the end of employment and stated that the doctors could not work for three specific health systems.

Apparently, the recruiting of employed doctors began in 2012. The recruiters reportedly told the doctors that the terms of the noncompete agreements were unenforceable. As a result, seven doctors left the first health care system for the second. A lawsuit has resulted, which the recruiting health care system believes should be dismissed because there was no malicious intent and because a privilege of competition existed.

Noncompete agreements are often points of contention, and when contract disputes come about, businesses must utilize a considerable amount of time and effort in order to address the conflict. Any type of lawsuit can cause significant issues for a company, and Texas business owners certainly want to take the right steps to protect their interests. Consulting with their legal counsel can help them determine the best courses of action for their particular situations.