Steven Eugene Clark's Answers

Under TX employment law can employer withhold paycheck without cause

Generally no (like everything else it depends on the actual facts, eg. may be withheld if child support order). Texas has a payday statute which requires employers to pay wages owed within 6 days for a terminated employee, and by the next scheduled pay period for employees who leave the company (other than by discharge). If an employee is not paid on a scheduled payday, the employer is required to pay the employee on another business day on the employee's request. Wage claims must be filed with...

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Non-compete agreement

Much depends on the language of the non-compete and scope of the covenant. If it can be shown that he is doing business in prohibited areas, then the courts would be more inclined to enforce the covenant. Proof of a clear violation is the key to enforcement of any covenant, once it is determined that the covenant is valid and enforceable.

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Are four year old invoices that were not mailed until 2009 valid in Texas

Texas has a 4 year statute for actions on contract or debt. If the services were provided more than four years ago, then the fact they were invoiced this year doesn't revive the limitations period. If there was any indication that the services would be paid during the 4 year period, then that novation may operate to toll or extend the limitations period.

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Will a non-compete signed document in Texas hold up in court? Or in Texas do you have the right to work where you want?

Covenants not to compete in Texas are generally enforceable if they are supported by adequate consideration, and are reasonable in scope (market and territory involved) and time. To know whether the non-compete is enforceable or not requires a careful analysis of its terms, and factual information from the client, particularly where the employment was at will. You should consult with an attorney that is experienced in this field.

As an orthodontist purchasing an existing practice, should I be a sole proprietor, LLC, or S corp?

You don't want to be a sole proprietor, because you have unlimited personal liability, much like a general partner in a partnership. With a LLC or S corp, at least you have a corporate shield protection for contractual liabilities. However, they won't protect you for tort liability (such as negligence) since you can be sued in your individual capacity for torts committed by you. I like the LLC over the S corp, because a third party creditor is limited to a charging order on the LLC interest,...

Am I obligated to honor a non-compete if my employer has verbally notified me that my salary will be cut by 50%?

One of the issues to analyze is whether under applicable law (Texas or Illinois) the salary cut can be construed as a material change in employment terms, leading to a failure of consideration to support the covenant. Texas courts can decline to enforce a covenant where the employer has "unclean hands" or has breached the agreement that forms the "otherwise enforceable agreement" to which the covenant is attached. Questions of covenant enforcement are always a fact-intensive inquiry, so I...

Business Contract Law

The general rule is that a company can only be bound by someone who has actual or apparent authority to execute contracts, which is generally the officers of the company. It would be doubtful that a receptionist would have apparent authority to bind the company, unless some misrepresentation of authority was made on which the vendor relied. The same analysis would hold true with respect to an assistant. It would be important to notify the vendor that the person signing the agreement did not...

Non-compete agreement

The starting point to answer your question is to have an attorney review the language of the non-compete provision. Generally, such provisions have to be reasonable in scope, duration, and geographical area restricted. Moreover, there has to be some form of adequate consideration for the covenant (special training, access to trade secrets) for it to be enforceable. While it appears from your summary that your ex-partner may be violating the covenant, more information needs to be provided...

Employee's rights under TX employement labor laws regarding false statements to be terminated

A libel suit requires publication of untrue statements to a third party. If emails are being sent to clients, then there is potentially publication. Whether the statements are libelous requires analysis by a qualified attorney familiar with this area of law. For example, there are Texas court opinions which hold that statements of opinion aren't libelous. Keep in mind that there is a very short statute of limitations in Texas to bring these type of actions--one year from the date of the...

Employee's rights under TX employment law getting full payment for work performed

Consider filing a claim under the Texas Payday Act with the Texas Workforce Commission for unpaid wages. This needs to be filed within 180 days of the date on which the unpaid wages were due--otherwise the TWC doesn't have jurisdiction to collect the wages on your behalf, and you would need to retain counsel to bring an action on your behalf.