Texas Company Sentenced for Wrongful Use of Employment Contracts

Texas radio and media companies may often ask employees to sign non-compete employment contracts as a way to protect intellectual property. When these contracts are abused and used as a means to discriminate against or injure a worker, a business may face serious consequences. A jury recently determined that a company's selective way of enforcing non-compete employment contracts was discriminatory against two former employees.

The contracts provided by the radio company prohibited its employees from seeking employment in the same city with the intention of limiting competition. The two former disc-jockeys filed a lawsuit against their former employer after they were not allowed to pursue employment in the city listed in their non-compete clauses after they were fired from their positions. The basis of their suit was that employees of a different race, in similar situations, were permitted to seek employment in the city without consequences.

After an investigation conducted by the Equal Employment Opportunity Commission found specific evidence, the situation was declared discriminatory. The jury declared that the media business had maliciously discriminated against the two employees. Court records show that the jury sentenced the Texas radio station to provide compensation for back pay and other expenses to the two former employees who filed the suit.

A Texas employee that is damaged professionally and financially by inappropriate use of employment contracts may question his or her rights. Worker's rights are protected by specific laws. So, a person who believes that he or she has suffered abuse or discrimination at work may seek professional help to assist with seeking compensation for any losses suffered.

Source: allaccess.com, "Malkan/Corpus Christi Loses Discrimination Lawsuit", Nov. 13, 2014