Houston Legal Blog

As a Texas business owner, you understand how important it is to strongly defend the interests of your company against any type of legal claims from your employees. You also know that the best offense is a good defense, meaning that a smart way to protect your company is to avoid disputes whenever possible. One way you can do this is by drafting strong employee contracts.

You may not think that contracts for your employees are necessary, but they can provide various protections for your business. Regardless of how large or small your company is, you may want to consider the legal protections that will allow you to avoid potential issues in the future. Employee contracts are smart, simple ways to clearly define the role, rights and responsibilities of both parties.

In Texas and across the United States, workers who are 40 or older have long been protected from discrimination based on their age. But a recent court decision from the U.S. Court of Appeals for the 7th Circuit has raised concerns. The decision seeks to draw a distinction between older employees and older job applicants, with a holding that the law only protects workers from discrimination in their current position.

The 7th Circuit case centers around a 58-year-old man who submitted an application for a legal job with a major medical device manufacturer. The man was not granted an interview but later learned the position went to a 29-year-old who was less qualified. This spurred the man to file a lawsuit alleging age discrimination against the medical device company. The lawsuit alleged a disparate impact claim under the Age Discrimination and Employment Act (ADEA). After the case went to trial, his appeal eventually made its way to the 7th Circuit. When rendering their decision, the court pointed to the 'plain language" of the ADEA statute in drawing a distinction between employees and applicants.

Texas executives may be concerned about the potential effect a noncompete provision may have on their professional future. This is often a part of an employment agreement, and it typically includes language that prevents the executive from taking work with competitors or launching an independent business for a certain period of time after leaving the firm. While employers tend to favor these agreements in order to protect trade secrets, intellectual property and other insider knowledge, they can pose a significant barrier for employees who want to move on.

Even workers outside the executive sphere are often asked to sign these agreements, especially in industries where intellectual property is a major factor. Indeed, one-fifth of the country's employees are currently working in jobs where they have signed noncompete agreements. Fourteen percent of these workers make less than $40,000 annually, bringing into question whether these agreements are proper for low-wage workers. Many people may want to avoid signing these types of agreements if at all possible but face a difficult time declining work.

Texas residents who are fans of gaming might be interested in learning that an ex-employee of Blizzard posted a description of ongoing racial discrimination that he encountered while working for the company. He did so following the reveal of the sexual orientation of Soldier 76 in "Overwatch".

The man, who is of Mexican heritage, wrote that he was originally hired to work on a team at Blizzard on a temporary basis. He stated that everything was fine until his position was made permanent. Once he became a permanent employee, he worked on a team with a man and a woman.