A Texas Court of Appeals Explains Employees’ Fiduciary Duties in Texas

The Eighth Court of Appeals recently analyzed the question of whether regular non-executive level employees in Texas owe fiduciary duties to their employers and answered that question with a resounding “yes.” While the scope of the rank-and-file employees’ fiduciary duties may not be as broad as those of a CEO or CFO of a company, they still owe a duty of loyalty to their employer and may not: appropriate company trade secrets solicit away the employer’s customers while working for the employer solicit the departure of other employees while still working for the employer carry away confidential information. Employees can, however, plan to go into competition with their employers and may take active steps to do so while still employed, but cannot cross the line of preparation into actual competition until after they leave (assuming no post-employment restrictive covenants). In Heriberto Salas, et al. v. Total Air Services, LLC, Salas opened and…

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