Dallas Employment Lawyer Blog

Dallas Employment Trial Lawyer Riley Carter

Most employees sign a proprietary information or trade secret agreement on their first day, somewhere in a stack of onboarding paperwork handed over between the tax forms and the direct deposit authorization. Very few employees read it closely, and almost no one keeps a copy. The document usually resurfaces only at the moment it matters most, when the employee has accepted a new position and the former employer sends a letter reminding them of “continuing obligations.” Understanding what these agreements actually require, and what they cannot lawfully require, is essential for any employee considering a move.

These agreements travel under a variety of names, including confidentiality agreement, nondisclosure agreement, proprietary information and inventions agreement, or employee agreement regarding confidential information. The label matters far less than the contents. A single document may contain several distinct promises, including a duty not to disclose or use confidential information, an assignment of inventions and work product to the employer, a promise to return all company property and delete company data, a promise not to solicit customers or clients, a promise not to recruit former coworkers, a covenant not to compete, a notice period before resignation, and a forfeiture or clawback provision affecting bonuses, commissions, or equity. Each of these operates differently, and each carries a different level of enforceability under Texas law.